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Cushman & Wakefield – Viability Report 1

BUSINESS SENSITIVE AND CONFIDENTIAL

Viability Assessment:

Land at Quadrant Distribution

Centre, Davy Way, Quedgeley,

Gloucester, GL2 2RN ON BEHALF OF ASHTENNE INDUSTRIAL FUND

LIMITED PARTNERSHIP

11th July 2018

Contract Ref No: 1805N700

BUSINESS SENSITIVE & CONFIDENTIAL


Contents

1. INTRODUCTION 1

2. THE SITE & PROPOSED DEVELOPMENT 3

3. INDUSTRIAL MARKET COMMENTARY 6

4. C&W FINANCIAL APPRAISALS - INDUSTRIAL DEVELOPMENT 15

5. BENCHMARK LAND VALUE 21

6. C&W FINANCIAL APPRAISALS – RESIDENTIAL DEVELOPMENT 27

7. SENSITIVITY ANALYSIS – IMPACT OF REDUCED PLANNING OBLIGATIONS 31

8. C&W ANALYSIS & CONCLUSIONS 33

Appendix A – Red Line Site Plan 34

Appendix B – Indicative Scheme Plan – Industrial 35

Appendix C – Indicative Scheme Plans – Residential 36

Appendix D – C&W Financial Appraisal, Industrial Scheme 37

Appendix E – Knight Frank Marketing Report – June 2018 38

Appendix F – BCIS Summary Sheet – Industrial 39

Appendix G – Gleeds Costs Estimate (May 2018) & Order of Cost Estimate (Addendum) (June 2018) 40

Appendix H – C&W ‘Upper Parameter’ Appraisal 41

Appendix I – New Build Residential Sales Comparable Evidence 42

Appendix J – BCIS Summary Sheet – Residential 46

Appendix K – Alium Group Feasibility Estimate (July 2018) 47

Appendix L – C&W Policy Compliant Appraisal 48

Appendix M – C&W Sensitivity Testing 49



1. INTRODUCTION

1.1 SCOPE & PURPOSE

This report has been prepared by Cushman & Wakefield (“C&W”) in response to an instruction from

Ashtenne Industrial Fund Limited Partnership (“the Applicant”) to provide an independent viability

assessment of the proposed industrial and residential development at a site known as Land at Quadrant

Distribution Centre, Davy Way, Quedgeley, Gloucester, GL2 2RN (“the Site”).

The Site comprises a vacant, brownfield employment site extending to 8.09 hectares (20 acres). It is

identified as a Key Employment Site (allocated for employment uses) under Stroud District Council’s

(“the Council”) Stroud District Local Plan (November 2015).

As summarised within this report, C&W have appraised the viability of a proposed industrial scheme

comprising 25 units, extending to 281,500 sq ft. C&W assessment concludes that due to the brownfield

nature of the Site and the significant burden of a number of abnormal costs relating to contamination,

site levels, services and surface water drainage measures, industrial development at the Site is not

deliverable in viability terms.

This report therefore considers the viability of alternative uses, namely a proposed residential scheme

incorporating 160 dwellings, and investigates the viability of this scheme and any associated planning

obligations which the scheme may be able to support.

The conclusion is that the proposed residential development is unable to viably support a “policy

compliant” level of Affordable Housing (30%) but may be able to support the provision of c. 20%

Affordable Housing, along with Community Infrastructure Levy (CIL) contributions of £1.04M.

This report outlines the approach taken by C&W in assessing the economic viability of both industrial

and residential development on the Site. The report also identifies the surplus value available for the

delivery of planning obligations (including the provision of on-site Affordable Housing).

1.2 VIABILITY IN PLANNING

Before going into the detail of viability relating specifically to the Site, it is imperative to provide context

on the issue of viability in planning more generally, and to review the nature of (and inter-relationships

between) the stakeholders involved in the development process. A comprehensive understanding of

these issues is a pre-requisite to the issue of development viability.

National Planning Policy

In March 2012 the Government published the National Planning Policy Framework (NPPF) which

replaces all national Planning Policy Statements and Guidance Notes (with the exception of waste

policies). The NPPF sets out the Government’s economic, environmental and social planning policies

for England and articulates their vision of ‘sustainable development’.

A key principle of the NPPF is the presumption in favour of sustainable development, which requires

Local Planning Authorities to plan positively for new development, and approve all individual proposals

wherever possible. Within the context of achieving ‘sustainable development’, the NPPF refers to

ensuring viability and deliverability at sections 173-177:



“To ensure viability, the costs of any requirements likely to be applied to development, such as

requirements for affordable housing, standards, infrastructure contributions or other

requirements should, when taking account of the normal cost of development and mitigation,

provide competitive returns to a willing land owner and willing developer to enable the

development to be delivered.”

Local Planning Policy

The Site is allocated as a Key Employment Site within the Stroud District Local Plan (November 2015),

and under Delivery Policy El1 (Key Employment Sites).

RICS Financial Viability in Planning 1st Edition 2012

The RICS Financial Viability in Planning 1st Edition 2012 Guidance Note (RICS Viability GN) sets out

best practice for practitioners involved in undertaking viability appraisal work. At section 2.1.2 it provides

an RICS definition of ‘financial viability’ for the purposes of planning decisions:

“An objective financial viability test of the ability of a development project to meet its costs,

including the cost of planning obligations, whilst ensuring an appropriate site value for the

landowner and a market risk-adjusted return to the developer in delivering that project.”

The Harman Report

The issues of viability are also considered within a report titled Viability Testing Local Plans: Advice for

Planning Practitioners (“the Harman Report"), which was produced by the Local Housing Delivery

Group in 2012. Whilst this report focuses mainly at a Local Plan preparation level, some of the general

observations give helpful guidance at a site specific level. For example, at page 14 the report provides

the following definition of viability;

“An individual development is viable if, after taking account of all costs, including central and

local government policy and regulatory costs and the cost and availability of development

finance, the scheme provides a competitive return to the developer to ensure that development

takes place and generates a land value sufficient to persuade the landowner to sell the land for

the development proposed. If these conditions are not met, a scheme will not be delivered”.

1.3 REPORT LIMITATIONS

This report provides a viability assessment of the Site within the context of viability in planning. It does

not constitute a formal valuation of the Site and thus any values given herein are exempt from the

current RICS Valuation – Global Standards 2017 (the “Red Book”).

C&W reserves the right to update, amend or vary our advice should the content of this report be disputed

and / or the matter progresses to a planning Appeal, Hearing or Inquiry. Furthermore, it is important that

unless otherwise agreed by C&W the contents of this report remain Business Sensitive &

Confidential, and are for the sole use of the Council and its respective professional advisers only.

None of the information we have provided in this report may be reproduced or referred to in any

document, circular or statement, nor may its content or any part thereof be disclosed orally or otherwise

to a third party, or placed in the public domain.



2. THE SITE & PROPOSED DEVELOPMENT 2.1 SITE LOCATION & DESCRIPTION

The Site comprises a vacant, brownfield site that extends to a gross area of circa 8.09 hectares (20

acres). It is situated on the southern side of the A38 Gloucester Road, between Quedgeley and

Hardwicke, approximately 8.05 km (5 miles) south of Gloucester city centre. A plan detailing the land

edged red is enclosed as Appendix A.

The Site is accessed off Davy Way, which provides direct access to the B4008 Bristol Road to the west,

which in turn, leads to the A38 Gloucester Road directly to the south of the Site. The A38 can also be

accessed directly to the north, via Davy Way, off the Waterwells roundabout. Junction 12 of the M5

Motorway is located less than one mile to the south, via the A38.

The Site is bound on the western, northern and eastern edges by industrial uses, including Quadrant

Distribution Centre directly to the west and St Modwen’s speculative development built on greenfield

land comprising seven industrial units directly bordering the Site to the north and east.

The surrounding area is mixed use in nature, predominantly commercial / employment uses in the

immediate vicinity with residential uses further afield, namely to the north and north west, on the

opposing side of the A38, and directly to the south east.

The land directly to the south of the Site, on the other side of the Shorn Brook (currently agricultural

land), comprises Hunts Grove, a proposed major residential led development site which was granted

outline consent in 2008 for the delivery of up to 1,750 homes and 5.75 hectares (14.21 acres)

employment development (B1 to B8 uses), among other uses.

Directly to the south east, adjacent to the Site, the first phase of the Hunts Grove residential

development (c. 350 dwellings) is being completed by Crest Nicholson.

The Applicant acquired the whole of Quedgeley estate (including the Site, the site on which the

Quadrant Business Centre now stands and other surrounding land parcels) from the Ministry of Defence

(MOD) in c. 2000 and since acquisition, have undertaken a number of works to develop the estate. Of

the original land acquired, the Site is the only remaining land parcel which remains undeveloped. The

part of the Site which remains undeveloped is the area most challenging in delivery and viability terms.

Works undertaken to date have included the demolition of the old MOD units (including removal of

asbestos) and removal of roads, hard-standings, underground services ductworks etc, site clearance,

provision of a new utility service mains, and the construction of the new access road (Davy Way) which

bounds the Site on the western boundary.

The Site suffers from changing levels throughout (primarily due to excess soil having been left on Site

following the development of the surrounding area) with steep slopes on the north and east boundaries.

The south boundary slopes more gradually towards the Shorn Brook.

2.2 PROPOSED DEVELOPMENT OPTIONS – INDUSTRIAL

The proposed industrial scheme largely divides the Site into four sections, all of which are accessed

from a central estate road off the roundabout at the southern end of Davy Way, with a secondary access

off Davy Way within the north-eastern corner of the Site. The net developable area of the Site assuming

this development option is 6.73 hectares (16.63 acres).



The proposed scheme incorporates 25 units ranging from 2,500 to 100,000 sq ft (GIA), with a total

proposed floor area of 281,500 sq ft. This mix has been informed by C&W’s industrial agency teams

based on the most likely mix for the Site taking into consideration current occupier demand. The table

below provides the accommodation for the indicative scheme and a plan is incorporated as Appendix

B.

REF UNIT AREA GIA (SQ FT) NO. OF UNITS

TOTAL FLOOR AREA GIA (SQ FT)

5.25 Acre Site

Industrial / warehouse unit 2,500 5 12,500





Sub-total 21 91,500

Unit 1


Sub-total 1 100,000

Unit 2


Sub-total 1 30,000

Unit 3


Sub-total 1 20,000

Unit 4


Sub-total 1 40,000

TOTALS 25 281,500

2.3 PROPOSED DEVELOPMENT OPTIONS – RESIDENTIAL

The proposed residential development extends to a net developable site area of 4.40 hectares (10.87

acres) and comprises 160 dwellings, incorporating a mix of apartments and two, three and four-

bedroom houses.

The Applicant’s architects, Higgs Young Architects Limited, have drawn up two indicative scheme plans

(which are incorporated as Appendix C). To clarify, the two scheme plans incorporate the same

housing numbers / type and mix, albeit show slightly different layouts. An accommodation schedule is

provided below:

HOUSE TYPE

DESCRIPTION NO. OF UNITS

UNIT AREA (SQ FT) TOTAL AREA (SQ FT)

GROSS INTERNAL AREA (GIA)

NET INTERNAL

AREA (NIA) *

GROSS INTERNAL AREA (GIA)

NET INTERNAL

AREA (NIA) *

A 4 bed detached 5 2,546 2,546 12,730 12,730

B 4 bed detached 7 1,507 1,507 10,549 10,549

C 3 bed detached 3 1,410 1,410 4,230 4,230

F 3 bed semi 48 1,152 1,152 55,296 55,296

G 2 bed terrace 8 872 872 6,975 6,975

H 2 bed semi 45 797 797 35,865 35,865

I (a) Apartment 6 495 421 2,970 2,525

I (b) Apartment 6 538 457 3,228 2,744

J 3 bed corner 19 1,141 1,141 21,679 21,679

K 3 bed corner 13 1,119 1,119 14,547 14,547

TOTALS 160 168,070 167,140

* Assumes a Gross to Net ratio of 85%.



2.4 VIABILITY ISSUES AND SITE CONSTRAINTS

In light of the former use of the Site and the necessary site preparation and enabling works, there are

a number of constraints and challenges that the Site faces in terms of physical delivery of any type of

development which must be considered in appraising the development options. These are detailed

below:

• Significant surplus of soil on site resulting from development of neighbouring land which

requires levelling / removal prior to redevelopment;

• Issues surrounding surface water drainage (i.e permitted surface water run-off rate of 2.5 litres

/ second / ha) which requires the construction of swales and / or attenuation ponds to contain

surface water (owing to the nature of the sub-soil i.e. clay, soak-aways in isolation would not

be sufficient). There are cost implications for this and similarly, the need for any attenuation

ponds reducing the overall ‘net developable area’;

• Steep slopes on the east and northern boundary;

• Sensitivity to noise from adjoining industrial uses to the west, north and east of the Site, as

such, need for noise buffers and bunds (particularly relevant in respect of the residential

development);

• Contamination issues resulting from for the former use of the Site, including elevated levels of

PAHs (Polycyclic Aromatic Hydrocarbons) widely spread across the Site as well as other

localised contamination issues such as diesel spills, pits containing buried bulbs / radio vales

and another containing asbestos cement / sheet fragments. There is therefore the need for

remediation when considering development to more sensitive uses (residential) – removal of

shallow soils in garden areas and / or capping with a suitable thickness of clean soils etc;

• Requirement for additional power to be brought to the Site due to limited direct connections.

Overall, it is necessary to understand the above works and constraints in the context of the financial

viability analysis undertaken in the following sections.



3. INDUSTRIAL MARKET COMMENTARY

3.1. MARKET OVERVIEW – TAKE UP, SUPPLY AND DEMAND

The first half year of 2017 was an good year for the industrial sector in the South West region. The

region recorded its highest half year industrial take-up figures in the last ten years, with take-up at 3.6

million sq ft compared with 2.6 million sq ft take-up recorded in the second half year of 2016 (the second

highest half year take-up in the last ten years), and take-up of 1.6 million sq ft in the corresponding first

half year of 2016.

Take up in 2016 and the first half of 2017 was generally skewed by significant occupier transactions, in

particular the land sales in Avonmouth for the development of 1.2 million sq ft / 55 acres for The Range

(H2 2016) and 1.25 million sq ft / 33.5 acres for Amazon (H1 2017). In contrast, take-up in the second

half of 2017 was down to only 550,000 sq ft, a reduction in part due to reduced standing stock and

ready land supply in the prime distribution locations, and in part due to the lack of one of the major land

transactions experienced in the previous 18 months. Take-up so far in 2018 is 660,000 sq ft, already

exceeding take up in the first second half of 2017 (Cushman & Wakefield Research).

Industrial supply of existing stock in the South West region stands at 4.3 million sq ft, up slightly from

the 12 year low experienced in 2017 (Cushman & Wakefield Research). As a result, despite relative

political and economic uncertainty, the market has begun replenishing stock through speculative

development, with major schemes at Horizon 38, Bristol (580,000 sq ft), Central Park, Bristol (555,000

sq ft), Symmetry Park, Swindon (217,000 sq ft) and Western Approach, Avonmouth (105,500 sq ft).

As is the trend across the whole of the South West, supply in Gloucester remains low, which continues

to put an upward pressure on rental levels. This has been evident over the last six years, and is likely

to fuel further speculative new build development. Mid box development appears to be the key target

for most developers, taking advantage of market demand as St Modwen have continued to do at their

Gateway 12 development at Waterwells Business Park in Gloucester (adjacent to the Site). There is

also good demand and a constrained supply for small light industrial units on multi-unit schemes in main

towns and cities across the South West, however high build costs are generally preventing development

of these types of unit, albeit there are some examples of it taking place in Gloucester such as Gabwell

Business Centre.

In line with the regional trend, demand in Gloucester across the board has continued to improve, and

continues to be a popular location with national, but mainly local occupiers. Gloucester is the prime

location in Gloucestershire (outside of Bristol and Avonmouth) in logistics and industrial terms, with the

larger business parks close to the motorway such as Gloucester Business Park, Quedgeley West

Business Park, and Waterwells Business Park continuing to prove popular and experiencing high

occupancy rates.

Occupiers tend to prefer these locations due to the straightforward access from the M5 motorway, and

the age and specification of the units. Demand generally continues to be good, albeit primarily focused

on accommodation of below 50,000 sq ft, and with a large amount of such demand falling in the sub-

20,000 sq ft size range. This follows in to land demand, with the majority coming from owner occupiers

and regional / local industrial developers seeking plots of sub- 2.02 hectares (5 acres). Demand for

buildings over 50,000 sq ft is very limited, albeit not completely absent, and demand for development

plots of 2.02 hectares (5 acres) and above is extremely limited indeed.



3.2. COMPETING SCHEMES

Gloucester Business Park is generally accepted as being the best logistics and industrial location in

Gloucestershire, being a well-managed Arlington / Goodman developed park providing both proximity

to the main populations of Gloucester and Cheltenham, and being situated immediately adjacent to

Junction 11A of the M5 motorway. Gloucester Business Park is also considered to be the prime office

location for the area. Gloucester Business Park accommodates large logistics and industrial occupiers

such as UPS, G-Tekt, DHL Trade Team, Royal Mail, and Laithwaites, as well as office occupiers

including Horizon Nuclear Power and Lockheed Martin.

Waterwells Business Park and Quedgeley West Business Park are also considered to be prime

business park locations, with Waterwells Business Park accommodating a mix of industrial occupiers

as well as out-of-town office occupiers, and Quedgeley West Business Park being more focused on

distribution.

Waterwells Business Park accommodates logistics and industrial occupiers such as DPD, Premiere,

and Parcelforce, with office occupiers including Gloucestershire Constabulary and Kohler Mira. The

business park also accommodates other multi-tenanted office developments and a large number of

smaller multi-tenanted light industrial / business unit schemes which have been developed by various

regional and local developers over the last 10 years or so.

Quedgeley West Business Park is a St Modwen developed scheme that is now completed and fully

occupied, with distribution units from 12,000 to 100,000 sq ft and occupiers including CM Downton,

Schlumberger, Gardiner Brothers, and Advanced Insulation.

New larger logistics and industrial development is now being focused around the limited last remaining

plots at the larger Gloucester Business Park and Waterwells Business Park. Added to this, other largely

undeveloped sites are being promoted and brought forward such as Centre Severn and Gloucester 12.

Centre Severn is located in Barnwood, not far from Gloucester Business Park but closer to the City

Centre, and comprises 5.7 hectares (14 acres) of land suitable for a range of potential uses including

logistics and industrial, roadside, and leisure. Access to the scheme is via Junctions 11 and 11a of the

M5 motorway. The scheme is to be developed by local developer Peveril Securities.

Gloucester 12 (formerly Javelin Park) is a Graftongate scheme located in Quedgeley, on the eastern

side of Junction 12 close to Quedgeley West Business Park. The site comprises of 5.86 hectares (14.48

acres), previously promoted to accommodate large logistics and industrial buildings of between 100,000

sq ft and 280,000 sq ft, the scheme is now being promoted for mid-box units.

In addition, Quedgeley East Business Park is a former airfield which is well occupied with smaller

occupiers, but will be brought forward for redevelopment by St Modwen in due course.

In terms of brownfield redevelopment sites closer to the City Centre, Rockhaven Developments are

developing a small circa 1.21 hectare (3 acre) plot within Triangle Park, a retail-led development

scheme. Rockhaven Park will comprise small light industrial / business units appealing to local

occupiers.

In addition, Paloma Capital and Chase Commercial will be redeveloping the 4.37 hectare (10.80 acre)

Former Interbrew Premises on Eastern Avenue for a mix of small to medium sized industrial units and

roadside type uses. They are currently promoting the scheme named Access Park.



3.3. SPECULATIVE DEVELOPMENT

Gateway 12, Waterwells Business Park

Gateway 12 is St Modwen’s now established speculative mid-box development scheme, comprising

seven brand new units between 24,154 sq ft and 66,392 sq ft with approximately 10% office content

and dedicated service yard. The scheme borders the Site on two sides, situated on an L-shaped site.

We understand that St Modwen’s acquired this land in 2015 and comprised greenfield land with few

development constraints.

Units have been developed progressively since 2015, with two sold and one let to date. The first

transaction was the sale of Unit 2 comprising 40,924 sq ft to ProCook in December 2015 at a price

equating to circa £80.00 per sq ft. This was followed less than a year later by the sale of Unit 3

comprising 40,482 sq ft to Warwick Fabrics in November 2016 at a price equating to circa £84.00 per

sq ft. Both transactions were off quoting prices of £90.00 per sq ft and quoting rents of £6.75 per sq ft.

With the next phases of development, St Modwen have revised their strategy and are now only offering

units on a leasehold basis. The first letting at Gateway 12 has recently completed (March 2018), with

Unit 5 comprising 38,869 sq ft being let to Amazon on a 10 year lease with break at year 5 at £6.75 per

sq ft. There is understood to be strong interest in the next unit, Unit 6 comprising 41,355 sq ft, where

an in-principle deal is understood to have been agreed pending approvals.

The final phases of the scheme are currently under construction with Units 4 and 4a comprising 24,154

sq ft and 34,099 sq ft respectively, having a proposed practical completion date of July 2018. Unit 6

comprising 66,392 sq ft is also under construction with a proposed practical completion date of October

2018. The units are being offered on a leasehold only basis at quoting rents of £6.75 per sq ft, although

it is understood there is occupier interest at c. £6.50 per sq ft.

Gabwell Business Centre, Waterwells Business Park

Gabwell Business Centre is a new small light industrial unit development by Gabwell Property

Developments comprising two terraces totalling 15 units ranging from 2,869 to 4,916 sq ft or

combinations thereof. The scheme borders part of the Site (to the west), and the units are currently

under development with a proposed practical completion date of April 2018.

The units are being offered on a freehold basis, with quoting prices in the order of £104 per sq ft, with

consideration being given to leasehold proposals at circa £7.50 per sq ft based upon terms and status.

Two larger units of 3,912 and 4,916 sq ft are understood to be under offer.

Gloucester 12, Quedgeley

Gloucester 12 (formerly Javelin Park) is a proposed development situated adjacent to Junction 12 of

the M5 motorway and to the east of the motorway itself. The site comprises a total of 5.86 hectares

(14.48 acres), and was previously promoted for large format distribution units of up to 280,000 sq ft.

The latest revised masterplan alters the scheme to provide mid-box distribution units, and the first phase

comprises of four units of 17,000 sq ft, 27,000 sq ft, 37,500 sq ft, and 40,000 sq ft respectively with

circa 10% office content and dedicated service yards.

The units are being offered on a freehold or leasehold basis, with quoting prices of £105 to £110 per sq

ft and quoting rents of £6.75 to £6.95 per sq ft. The units are not currently proposed to be speculatively



developed, but are being marketed on a build to suit basis with a delivery period of 9 months, and the

marketing promotes build to suit units of 20,000 to 125,000 sq ft.

Rockhaven, Triangle Park, Metz Way

Rockhaven is new development by Rockhaven Developments comprising of five blocks of small light

industrial units totalling 22 units, located close to Gloucester City Centre in a popular commercial and

retail location. The units range from 1,875 to 3,125 sq ft or combinations thereof, and are currently

under development with a proposed practical completion date of mid-2018.

The units are being offered on a freehold or leasehold basis, with quoting prices of £110 per sq ft and

quoting rents of £8.00 per sq ft. Block A comprising six units incorporates solar PV, and are available

to rent only at the higher rents of £8.50 per sq ft, to reflect the benefit of the solar PV gains.

3.4. DEVELOPMENT LAND

Whilst development has generally been relatively limited across the South West since 2007, the

aforementioned speculative industrial development that have recently taken place, mean that

Gloucester has been active in terms of industrial development in the region. This has partly been down

to availability of serviced development land in the city compared to other more constrained locations

along the M5 corridor, such as Cheltenham and Bristol (as distinct from Avonmouth, which is very much

geared towards the distribution market).

However, it must be noted that whilst the overall view on development in the region is positive due to

improving market dynamics impacting positively on rental / capital values, there are still development

sites which remain vacant and undeveloped due to high build costs and development constraints

preventing them being brought forward for speculative development. On such sites, it is likely that

speculative development of any nature will require a number of pre-lettings / pre-sales in order to render

development financially viable.

Straightforward land transactions are relatively few and far between, and this is due to the majority of

sites being within the ownership of developers looking to benefit from developing buildings for

occupiers.

For evidence of land transactions, you have to either look at somewhat historic transactions, seek to

analyse pre-let or pre-sale transactions, look further afield than Gloucester, or consider brownfield sites.

The latter are difficult to analyse due to unknown abnormal costs or constraints, which can negatively

impact different sites to differing degrees. The following are the key recent land transactions in the

Gloucester area.

Waterwells Business Park

Gloucestershire Police purchased 2.8 acres at Waterwells Business Park at the end of 2014 for a price

understood to equate to £275,000 per acre.

However, the most recent transaction on Waterwells Business Park, was the sale of 0.87 hectares (2.15

acres) immediately adjacent to the Site, to Gabwell Property Developments in December 2015, at a

price equating to £325,581 per acre.

We understand that this Site was effectively “cleaned” prior to disposal, with contamination and

remediation works having been undertaken by the vendor, in contrast to the Site where further works

are required.



Gloucester Business Park, Hucclecote

Gloucester Business Park is the prime distribution and business park in the Gloucester and Cheltenham

area, but there has been a lack of straight land transactions since ROK purchased a site of

approximately 1.62 hectares (4 acres) from Arlington at a rate of £283,000 per acre back in 2006.

More recently in June this year, TBS Engineering purchased a 3.55 hectares (8.78 acre) plot at the

business park to develop a 100,000 sq ft purpose built facility incorporating 20,000 sq ft of offices. The

site which was acquired on a freehold basis included an element of expansion land. The land price

stated to have been paid for the land equates to approximately £380,000 per acre, however this is not

a true reflection of the actual land price as the building is being constructed on a freehold turnkey basis

by the developer, Goodman, and the land price includes a large element of developers profit on the

expansion land which is not immediately being developed. Taking in to account the developers profit

applied to the expansion land, the land price is understood to equate to a base price of circa £325,000

per acre.

There is understood to be serious occupier-led interest in the remaining 10.12 hectares (25 acres) at

Gloucester Business Park.

Kingsway Business Park, Quedgeley

Kingsway Business Park is located between Waterwells Business Park and Gloucester City Centre. It

comprises a mixed use site where an Asda superstore, Greene King pub and health centre (Roseway

Health) have been secured. A prominent plot of 1.04 hectares (2.57 acres) remains available for higher

value / roadside uses, but a 1.21 hectares (3 acre) plot is under offer at a price understood to equate

to approximately £425,000 per acre.

Stroudwater Business Park, Stonehouse

Further south along the M5 corridor, a 1.82 hectare (4.5 acre) greenfield site at Oldends Lane on the

edge of Stroudwater Business Park in Stonehouse near Stroud was sold in June 2017. The site

benefited from planning consent for employment uses, and was sold to Dairy Partners for the

development of their own bespoke warehouse and office facility, at a price equating to £400,000 per

acre. We understand from the marketing agent that there were no issues relating to contamination /

remediation, with the site being greenfield land.

A further 0.49 hectare (1.2 acre) site on Brunel Way, Stroudwater Business Park, comprising the residue

of an earlier development on behalf of Schlumberger, was sold to Sterling Storage for the development

of a self-storage facility, at a price equating to £312,500 per acre. The site is broadly rectangular in

shape, comprising surfaced tarmacadam, and slopes off towards a brook at the rear, thereby reducing

the net developable area considerably.

Former Interbrew Premises, Eastern Avenue, Gloucester

The Former Interbrew Premises which benefits from a prominent frontage to Eastern Avenue was sold

in 2016 for a reported £5 million equating to £462,963 per acre to investor / developer Paloma Capital

/ Chase Commercial off a quoting price of £6.25 million equating to £578,704 per acre.

The site comprises 4.37 hectares (10.80 acres), with 147,000 sq ft of income producing warehouse

space (£550,000 per annum until August 2017). The tenant, DHL Trade Team, vacated in August 2017,

with the new owners having submitted a planning application for redevelopment to comprise of a mixture

of roadside and small scale retail uses, with refurbishment and redevelopment of part of the existing

warehouse accommodation.



This site is highly prominent and in the heart of Gloucester’s main edge of town commercial area, so

would be considered a superior location. In addition, the prominent element of the site and nature of

the sale with income until August 2017 makes the transaction difficult to truly analyse in comparison to

traditional employment land.

Former Vibixa Premises, Cheltenham

The Former Vibixa Premises comprises a broadly square site of 2.00 hectares (4.93 acres), with

133,600 sq ft of poor quality buildings on site, and was sold to Superdry for £3.10 million equating to

£628,803 per acre for redevelopment and change of use in to new headquarter offices for the

Cheltenham based multi-national retail brand. Whilst the land price achieved reflects a significant

premium paid by a major local occupier, it is understood that industrial developers Chancerygate were

strong under bidders and were rumoured to be bidding of a gross land value (excluding demolition and

site servicing costs / abnormals) of in the region of £400,000 to £500,000 per acre. The site is on the

edge of Cheltenham’s main edge of town commercial area, so would be considered a superior location,

particularly as Cheltenham suffers a lack of employment development land generally.

Former National Grid, Arle Avenue, Cheltenham

Other recent brownfield site sales include the 2.31 hectare (5.72 acres) Former National Grid site at

Arle Road, Cheltenham, which sold to Wernick Hire in June 2016 at a price equating to £182,500 per

acre. This comprised an awkward shaped site without prominence, and was sold to the neighbouring

occupier. In addition, the site was situated adjacent to existing National Grid high pressure bullets,

which together with the awkward shape limit the developability of much of the total site.

Bishops Cleeve

Gloucestershire Constabulary are currently going through the sales process to dispose of a 1.54 hectare

(3.8 acre) greenfield site they historically purchased at Cleeve Business Park, Bishops Cleeve. It is

understood that they paid in excess of £500,000 per acre for the Bishops Cleeve site originally, and are

currently in a round of second bids to establish best sales price. The site is understood to be under

offer to a national industrial developer at a price in the region of £400,000 per acre.

As evidenced by the above land transactions, the majority of land sales in the Gloucester and

Cheltenham area are for 2.02 hectares (5 acres) or less. Aside from the Former Interbrew Premises on

Eastern Avenue which comprises a 4.37 hectares (10.80 acre) prominent mixed use site in a mixed

commercial location, there have been no substantial land transactions in the area in recent years over

and above 2.02 hectares (5 acres) in size.

The freehold turnkey deal in which TBS Engineering purchased a new 100,000 sq ft building with

associated plot and expansion land totalling 3.55 hectares (8.78 acres), is a rare occupier led

transaction of such a scale in the Gloucester and Cheltenham area. There have certainly been no

transactions of commercial land involving 8.09 hectares (20 acres) or more, and you have to look further

afield to Avonmouth / Severnside, which represents the prime logistics and distribution location for the

South West region, in order to find occupier or developer land transactions of any scale.

In the past 12 months, land transactions in Avonmouth / Severnside have included 14.16 hectares (35

acres) to developers Barberry / Richardson, 13.56 hectares (33.5 acres) to Amazon, and 6.07 hectares

(15 acres) to DHL, meanwhile in 2016 further transactions comprised 22.26 hectares (55 acres) to The

Range, (13.35 hectares (33 acres) to Lidl, 8.09 hectares (20 acres) to developers Mountpark, and

4.86hectares (12 acres) to Davies Turner Logistics. Whilst demonstrating occupier demand in the

Avonmouth / Severnside area in comparison to Gloucester / Cheltenham, many of the transactions



have also been encouraged by the unique 1957 planning consent covering this area and allowing for

immediate development. Gloucester remains a location where demand is predominantly from small

scale industrial developers and or owner occupiers, primarily seeking plots of between 0.4 to 2.02

hectares (1-5 acres).

3.5. RENTAL AND CAPITAL VALUES

The lack of supply together with improved demand, has pushed headline rents and capital values

upwards over the last few years. Rental values for prime logistics and industrial space has increased

to £5.75 per sq ft for 100,000 sq ft units and above, £6.50 per sq ft for 50,000 to 100,000 sq ft units,

and more recently £6.75 per sq ft for mid-box units, such as those being developed at Gateway 12,

Waterwells Business Park. Save for the recent letting activity at Gateway 12, the aforementioned prime

rents are in the main predicated upon perceived prime rents, due to limited new speculative

development and pre-let activity above 50,000 sq ft in Gloucester.

In terms of capital values, transactions at Gateway 12, Waterwells Business Park currently set the tone

at between £80.00 and £84.00 per sq ft, with the sales of Units 2 and 3 respectively. This follows on

from the tone generally set with sales of units between 12,000 and 30,000 sq ft at nearby Quedgeley

West Business Park.

It is envisaged that this upwards pressure on both rents and capital values will continue, predominantly

due to a shortage of supply.

3.6. LETTING TRANSACTIONS

The most recent letting transaction of any scale in Gloucester, was the letting of Highroller, Plot 6100,

Gloucester Business Park, which albeit 20 years old and in tired condition at the time of the letting,

represented some of the best large distribution premises in Gloucester. The unit was let to DHL Trade

Team at £5.00 per sq ft for a 10 year term in January 2016.

The landlord agreed a low rent on the basis of using the premium from the former tenant as an offset

to the current rental level. The building is over 260,000 sq ft with a standard 10% office content, with a

variety of eaves heights from 10m to 18m as this was originally developed as a bespoke cold store. It

should also be noted that DHL Trade Team took the building in need of substantial repair works and

under an obligation to the landlord to put the building back into a fully repaired state, which contributed

to the level of rent paid.

Subsequently in August 2016, Howard Tenens also completed a letting of the largest speculatively built

distribution warehouse in Gloucestershire and the whole South West for many years, the 169,000 sq ft

building at Severn Distribution Park, Sharpness, known as Bristol Gateway. This unit actually let within

3 months of practical completion to CM Downton, at a headline rental of £4.50 per sq ft, the rent

reflecting the inferior location of the unit compared to the prime Gloucestershire distribution schemes.

The following schedule outlines key letting activity in the Gloucestershire area in the last two years:

ADDRESS TENANT TRANSACTION

(DATE)

SIZE (SQ

FT)

RENT £ PER

ANNUM

(£ PER SQ FT)

COMMENTS

Unit 6, Gateway 12,

Waterwells

Business Park,

Hardwicke,

Gloucester

Confidential OML

(Under Offer) 41,355

c.£279,146

(c.£6.75)

Brand new mid box

distribution unit.



Unit 5, Gateway 12,

Waterwells

Business Park,

Hardwicke,

Gloucester

Amazon OML

(March 2018) 38,869

£262,366

(£6.75)

Brand new mid box

distribution unit.

Unit 4, The IO

Centre, Hurricane

Road, Gloucester

Business Park,

Hucclecote,

Gloucester

Infusion GB OML

(May 2017) c.10,000

£80,000

(£8.00)

Existing tenant within

the estate taking

additional expansion

space.

Unit 1, Ashchurch

Business Centre,

Tewkesbury

Fassa

Bortollo

OML

(Mar 2017) 23,436

£149,000

(£6.35)

The building has a

larger office content,

standing at

approximately 40%.

The comparable is

located on Ashchurch

Business Centre, to

the north of

Gloucester.

Unit 11a, Barnwood

Fields Business

Centre, Barnett

Way, Barnwood,

Gloucester

Sapa Lease Renewal

(Jan 2017) 9,608

£60,000

(£6.25)

1980s industrial unit

within a terrace of

three units, benefiting

from external car

parking. The building

is older quality stock.

There is a large yard

and circulation area.

Unit 2, The IO

Centre, Hurricane

Road, Gloucester

Business Park,

Hucclecote,

Gloucester

Infusion GB OML

(Sep 2016) c. 9,000

£63,000

(£7.00)


the estate taking


space. Prime

business park

location.

Unit 3, The IO

Centre, Hurricane

Road, Gloucester

Business Park,

Hucclecote,

Gloucester

Infusion GB OML

(Sep 2016) c.12,000

£81,000

(£6.75)


the estate taking


space. Prime

business park

location.

Bristol Gateway,

Severn Distribution

Park, Sharpness

CM

Downton

OML

(Aug 2016) 169,478

£745,703

(£4.40)

Brand new

distribution unit.

Secondary location

compared to

Gloucester prime

distribution locations.

Highroller, Plot

6100, Gloucester

Business Park,

Hucclecote,

Gloucester

DHL Trade

Team

OML

(Jan 2016 260,000 (£5.00)

20 year old

distribution unit,

originally constructed

with cold storage

provision. Rent is

reduced to reflect

condition and

surrender premium

obtained by the

landlord.



In terms of new or modern small light industrial / business units of circa 1,000 to 3,500 sq ft, rents are

approximately £7.50 per sq ft at developments such as The Aquarius Centre and Glenmore Business

Centre, with premiums up to £9.50 per sq ft paid for more hybrid type space at Glenmore Business

Centre.



4. C&W FINANCIAL APPRAISALS - INDUSTRIAL

DEVELOPMENT

C&W’s financial appraisal in respect of the proposed industrial development is enclosed within

Appendix D and summarised below:

C&W APPRAISAL – PROPOSED INDUSTRIAL SCHEME

REVENUES

GDV – Phase 1 (Unit 1) £12.05M

GDV – Phase 2 (5.25 Acre Site) £10.40M

GDV – Phase 3 (Units 2, 3 and 4) £9.64M

Purchaser’s Costs (£2.18M)

Net Development Value £29.91M

Tenant Revenue (rental income) £0.673M

Net Realisation £30.58M

COSTS

Site Acquisition Costs £0.11M

Construction Costs (Plot Costs) £16.25M

Contingency £0.81M

Infrastructure and Abnormal Costs £6.03M

Professional Fees £1.34M

Planning (CIL) -

Marketing & Disposal Costs £0.29M

Finance Costs £1.37M

Total Costs (Excluding Profit) £26.20M

Development Profit £4.96M

Total Costs (Including Profit) £31.15M

RESIDUAL LAND VALUE -£0.571M

(Negative)

C&W’s financial appraisal in respect of the proposed industrial scheme produces a Residual Land Value

of -£0.571M (Negative). In order for the proposed scheme to be viable, the financial appraisal would

need to produce a positive Residual Land Value at a level which incentivises the landowner to release

the land for development.

The negative Residual Land Value therefore clearly demonstrates that the proposed industrial

development is an unviable development option. The negative result is due to the significant burden of

infrastructure / abnormal costs which the scheme must bear in order to deliver the proposed scheme.

In light of this, we have included as Appendix E a report by industrial agents, Knight Frank, who have

been retained by the Applicant as marketing agents for the Site since 2005.

The report provides an overview of the marketing history of the Site and highlights the significant

barriers to sale including abnormals / infrastructure costs hindering demand and similarly, lack of

demand for land of this scale. This supports the view that the Site cannot viably support industrial

development (on a speculative or owner occupier basis) and is therefore unlikely to be brought forward

for development.

In the following sub sections, we outline the inputs and assumptions adopted by C&W for the purpose

of our appraisal analysis.



4.1. GROSS DEVELOPMENT VALUE

In arriving at our opinion of Gross Development Value in respect of the proposed industrial scheme, we

have had regard to the local market supply and demand dynamics. In this regard, we have incorporated

a Market Overview relating to the industrial market in Gloucester and the wider South West region within

Section 3 above.

Rental Values

We have arrived at our opinion of rental value based on our understanding of Gloucester’s industrial

market, and the supply and demand dynamic, plus advice received from local estate agents and

comparable evidence as previously reviewed.

C&W’s appraisal assumes rental values for the completed industrial units ranging from £6.25 to £8.00

per sq ft, as detailed within the table below. The range in rental values adopted reflect the impact of

quantum due to the range in proposed unit sizes.

C&W RENTAL VALUE ASSUMPTIONS

Unit size Rental Value

2,500 sq ft £8.00 per sq ft





20,000 sq ft £7.00 per sq ft

30,000 sq ft £7.00 per sq ft

40,000 sq ft £7.00 per sq ft

100,000 sq ft £6.25 per sq ft

In reality, having regard to recent and relevant industrial comparables (as detailed in the report section

above), these rental values may be considered optimistic. However, they have been adopted for the

purpose of the analysis.

Investment Sales

C&W’s appraisal has assumed the following letting profile and investment sales:

• Phase 1 - Unit 1 (100,000 sq ft) – pre-let assumed in respect of Unit 1. Investment sale

assumed on completion of build (rental value capitalised at a yield of 5.0%). A 9 month rent

free period has been reflected.

• Phase 2 - 5.25 Acre Site (mix of units ranging from 2,500 to 6,000 sq ft) – phased letting

profile (no pre-lets) capitalised at 6.5% upon completion of lettings when investment sale is

assumed. Rent free periods of 6 months per letting reflected.

• Phase 3 – Units 2 (30,000 sq ft), 3 (20,000 sq ft) and 4 (40,000 sq ft) – phased letting profile

(no pre-lets) capitalised at 6.5% upon completion of lettings when investment sale is assumed.

Rent free periods of 6 months per unit reflected.

4.2. DEVELOPMENT COSTS

Acquisition Costs

The appraisal includes Acquisition Costs, where applicable, as follows:

• Stamp Duty Land Tax at the prevailing rate;

• Agents Fees at 1%;



• Legal Fees at 0.8%.

Construction Costs

C&W have consulted BCIS in respect of the base build costs relating to the construction of the industrial

units.

BCIS data rebased to the South West as at June 2018 demonstrates that lower quartile build costs for

general purpose-built warehouses / stores reflect the following rates (based on unit size) (see BCIS

summary sheet attached as Appendix F):

UNIT SIZE GIA (SQ FT) BCIS RATE PER SQ FT

Up to 500 sq m (5,381 sq ft) £81.38 per sq ft

500 to 2,000 sq m (5,381 to 21,528 sq ft)

£57.04 per sq ft

Over 2,000 sq m (21,528 sq ft) £48.50 per sq ft

C&W have reflected these costs within the appraisal, although it is recognised that ‘median’ build costs

may be more appropriate for a scheme of this nature (reflecting the rental profile adopted).

For clarity, BCIS build costs relate to the cost associated with the physical delivery of the industrial units

only (including standard foundations and preliminaries) – all other development costs are excluded from

the above estimates.

Infrastructure and Abnormal Costs

Aside from the standard unit build costs (where a BCIS rate has been adopted as detailed above) all

other construction costs associated with the scheme have been provided by cost consultants, Gleeds,

with further amendments relating to the assumed scheme provided by Cost Consultant John Tywdell

(Order of Cost Estimate, Addendum, June 2018), and included at the rear of Gleeds cost report.

The costs provided by Gleeds relate to a former indicative masterplan. Having been reviewed, the

masterplan for the industrial scheme has been updated, hence the update to the costs provided by Cost

Consultant John Twydell.

The full Gleeds cost estimate (dated May 2018) and the cost consultant’s amendments are enclosed

as Appendix G and summarised within the table below:

COST ITEM COST ESTIMATE

Site Preparation Works £1,045,329

Roads, Paths, Pavings and Surfacings

£2,423,582

Fencing £201,783

External Drainage £667,843

External Services £1,130,295

SUB-TOTAL £5,468,832

Preliminaries @ 15% Included above

OHP @ 5% Included above

Design Development Risk £273,442

Construction Risk £287,114

TOTAL COSTS £6,029,388



For clarity, of the total anticipated construction costs, summarised within the table above, those

considered to be “Abnormal Costs” associated with the development are summarised within Section 3

of the Order of Cost Estimate, Addendum, June 2018, and summarised within the table below:

COST ITEM COST ESTIMATE

Site Preparation Works £753,371

Roads, Paths, Pavings and Surfacings

£1,315,513

External Drainage £274,000

External Services £110,000

SUB-TOTAL £2,452,885

Preliminaries @ 15% £367,932

OHP @ 5% £141,040

Inflation from Q1 2016 to Q2 2018

£441,556

Design Development Risk £170,171

Construction Risk £178,679

TOTAL ABNORMAL COSTS £3,752,263

TOTAL ABNORMAL COSTS (EXCL. CONTINGENCY)

£3,403,412

The costs for the development as estimated by Gleeds as at May 2018 (with later amends by John

Tywdell, John 2018) therefore total £6.03M of which c. £3.40M are considered to be “Abnormal Costs”

(excluding contingencies / risk allowances).

Contingency

The appraisal accommodates a 5% contingency rate for Design Development Risk and 5% contingency

rate for Construction Risk applied to costs detailed above (i.e. Site Preparation Works, Roads, Paths,

Pavings and Surfacings, Fencing, External Drainage, External Services and Abnormals) as

recommended by the cost estimate report by Gleeds.

C&W have also incorporated a 5% contingency on the base build costs obtained from BCIS.

Professional Fees

C&W have applied Professional Fees at 6% of Construction Costs and Infrastructure and Abnormal

Costs, which would be considered appropriate for a development of this scale and nature (typically

assume 6%-8%).

Planning (CIL / S106)

CIL has not been applied in line with Stroud District Council’s Charging Schedule (February 2017). CIL

is not chargeable on commercial development within Stroud district (other than Supermarkets and Retail

Warehousing).

C&W have assumed no S106 costs within the appraisal. Should it transpire however that this

development would be subject to planning contributions in this regard, this would need to reflect within

the analysis as a cost of the development, which would further impact on the scheme’s viability.

Marketing & Disposal Costs

Marketing & Disposal Costs have been included at the following rates in accordance with standard

market practice:

• Letting Agent Fees @ 10% of GDV;



• Letting Legal Fees @ 5% of GDV;

• Purchaser’s Costs @ 6.8% of GDV.

Finance Costs

Finance Costs have been assumed at a 6% debit rate.

Development Profit

The appraisal accommodates a development profit reflecting at 19.34% return on cost.

4.3. DEVELOPMENT TIMESCALES & CASHFLOW ASSUMPTIONS

C&W’s appraisal is based on a total project period of 59 months, and assumes the following timescales:

INPUT C&W VIEW

Pre-Construction Phase 6 months

Phase 1 – Unit 1 (total - 100,000 sq ft)

Construction Phase 12 months S-curve application of costs over the construction period

Letting Profile Pre-let investment sale on completion of the construction period (October 2019)

Phase 2 - 5.25 Acre Site (total 91,500 sq ft)

Construction Phase 24 months commencing 6 months into the construction of Phase 1 (April 2019) S-curve application of costs over the construction period

Letting Profile

Phased letting profile over 36 months commencing 10 months into the construction phase 6 months rent free on each proposed letting Investment sale assumed on completion of the phased letting period of 36 months (February 2023)

Phase 3 – Units 2, 3 and 4 (total 90,000 sq ft)

Construction Phase 12 months commencing 12 months into the construction of Phase 2 (April 2020) S-curve application of costs over the construction period

Letting Profile

Phased letting profile over 18 months commencing 6 months into the construction phase 6 months rent free on each proposed letting Investment sale assumed on completion of the phased letting period of 12 months (October 2021)

C&W’s assumptions in respect of the remainder of the appraisal inputs are summarised in the table

below:

INPUT C&W VIEW

Land Value & Acquisition Costs N/A

Infrastructure and Abnormal Costs Apportioned across land parcels according to size of plot S-curve application over the construction period

Contingency Linked to construction costs

Professional Fees Linked to construction costs

Planning (CIL) N/A

Marketing & Letting Costs Flat-line application over the letting period

Disposal Costs (investment sale) Flat-line application on investment sale



4.4. VIABILITY CONCLUSION

C&W’s financial appraisal produces a negative land value of -£0.571M. This does not constitute a

‘competitive return’ which would incentivise the landowner to release the land and it is clearly against

the guidance set out in the NPPF and RICS Financial Viability GN.

Given the complexity of the Site and considerable costs associated with preparing the Site for

development, the above industrial scheme is not viable and therefore is unlikely to be brought forward

for development. This view has been verified by the lack of demand for the Site and the fact that it has

not been brought forward for development since it was first marketed in 2005.

In light of this, in order for the Site to be brought forward for development, it is necessary for alternative

uses to be considered.

The following report sections investigate the viability of the proposed residential scheme incorporating

160 dwellings and considers the level of planning obligations the scheme can potentially support

(Affordable Housing provision and CIL / S106 contributions).



5. BENCHMARK LAND VALUE

5.1. BENCHMARK LAND VALUE (COMPETITIVE RETURN)

In assessing whether the proposed residential scheme is viable, regard has been had to a Benchmark

Land Value, being the ‘threshold’ value against which viability is tested – i.e. for a scheme to be deemed

viable, the site value must be at a level which adequately incentivises the landowner to release the land

for development, the premise being that willing vendors will not dispose of sites below this threshold.

This is against this figure which viability is tested.

RICS Guidance (Financial Viability in Planning) and other Planning Policy guidance states that in

undertaking an assessment of financial viability it is important that each of the stakeholders receive a

fair and reasonable outcome if development is to occur, being 1) the Local Planning Authority in terms

of meeting its policy objectives (whether it is in the form of new site infrastructure, roads, education,

affordable housing, etc.), 2) the Developer in terms of receiving a reasonable level of profit in return for

its delivery risk exposure, and 3) the Landowner in terms of a reasonable return for the land – as an

incentive to bring the opportunity forward and release the land for development.

“An objective financial viability test of the ability of a development project to meet its costs,

including the cost of planning obligations, whilst ensuring an appropriate Site Value for the

landowner and a market-adjusted return to the developer in delivering that project”.

The RICS Guidance Note (GN) does not define what constitutes a ‘competitive return’ on land principally

because landowners may require different returns at difference stages of the economic / development

cycle. However, it does provide a framework against which practitioners can judge what can be deemed

as acceptable given the relevant circumstances.

Point 3.4.4 of the GN refers to the importance of considering an uplift from the current use value of any

site when assessing the appropriate ‘competitive return’ on land:

“For a development to be financially viable, any uplift from current use value to residual land

value that arises when planning permission is granted should be able to meet the cost of

planning obligations while ensuring an appropriate Site Value for the landowner and a market

risk adjusted return to the developer…The return to the landowner will be in the form of a land

value in excess of current use value…”.

The Site Value, therefore, representing the figure considered to be the ‘competitive return’ to the

landowner, enough to incentivise the landowner to release the land for development, is the figure that

needs to be established, and the figure against which viability of the scheme should be tested.

Current Use Value (CUV)

C&W opinion of Current Use Value (CUV) is based on the existing, employment / industrial use, for

which the Site is allocated.

In arriving at our opinion of gross value in terms of the Site, we have reviewed employment land

transactions within Gloucester and the wider area, as detailed within the Market Commentary section

above (Section 3).

The most comparable transaction is the sale of a neighbouring plot of land, adjoining the Site, which

sold to Gabwell Property Developments Limited in December 2015 for a price reflecting c.£325,000 per

acre.



We note that this comparable is far smaller than the Site, at only two acres. We would therefore expect

there to be a discount reflected in the value of the Site, to take into consideration the impact of quantum.

Having regard to the above comparable evidence, and with regard to RICS guidance, C&W consider a

gross CUV of £275,000 per acre to be appropriate for the purpose of the viability analysis. Based on a

‘developable’ land area of 16.63 acres, this equates to a gross threshold land value of £4.57M.

We note that the Site is constrained by a number of abnormals due to the Site’s specific constraints,

which will impact on the land value achieved.

The independent cost report (Gleeds, dated May 2018) identifies that abnormal costs amount to

£3.40M. When deducted from the gross threshold land value, this equates to a gross CUV of £1.17M

(Net Land Value of c.£70K per acre).

The CUV has been considered in the context of the NPPF and RICS viability guidance, recent

comparable land transactions in the Gloucester / wider South West area, and acknowledging the level

of development constraints specific to the Site.

Shinfield Principle

The Shinfield Approach relates to an appeal in respect of ‘Land at the Manor’ in Shinfield (appeal ref:

APP/X0360/A/12/2179141), and a planning application submitted by the University of Reading (to

Wokingham Borough Council) which sought consent for residential-led development comprising up to

126 dwellings, a sports pavilion, public open space, landscaping and associated works.

At appeal the Inspector noted that the NPPF does not define what constitutes a ‘competitive return’ to

the landowner and / or developer, but referred to the acknowledgement of the RICS Viability GN that,

whilst planning obligations paid on development need to be paid for out of the uplift in land value

generated by planning consent, other than in exceptional cases that obligation cannot use up the whole

uplift generated.

In this regard, C&W notes that Section 3.4.3 of the RICS Viability GN identifies the importance of

identifying upper and lower parameters in value terms for assessing the ‘Site Value’, such that for

development to be financially viable, the landowner must be adequately ‘compensated’ in the form of a

value uplift from CUV:

“The residual land value (ignoring any planning obligations and assuming planning permission

is in place) and current use value represent the parameters within which to assess the level of

any planning obligations. Any planning obligations imposed will need to be paid out of this uplift

but cannot use up the whole of this difference, other than in exceptional circumstances, as that

would remove the likelihood of the land being released for development.”

In the Shinfield case, the Inspector upheld the approach adopted by the Appellant, which was based

on the contention that a ‘competitive return’ (and equitable position) for the landowner is the midway

point between the Site’s CUV (the ‘lower parameter’) and its value with the benefit of planning

permission unfettered by planning obligations (the ‘upper parameter’). In summary, therefore, the

Shinfield approach contends that the competitive return, i.e. the Benchmark Land Value, should be

halfway between the CUV and the ‘upper parameter’ value.

More recent research by RICS (Financial Viability Appriasal in Planning Decisions: Theory and Practice,

April 2015) examines the approach established by the Shinfield case and confirms that, in the absence



of more appropriate and reliable methods for establishing the appropriate ‘threshold land value’ against

which viability should be tested, this approach:

“…addressed the issue of changing viability through time and avoids the circularity issue that

afflicts threshold land values that are based on market values or purchase price...This

approach…tracks changing market states and shares the profits of development between

developers, landowners and the community in a way that is more equitable and responsive than

current approaches.”

‘Upper Parameter’ – No Planning Obligations

Having established the CUV in respect of the Site, at c. £1.17M, representing the ‘lower parameter’, the

‘upper parameter’ must be established, being the residual land value of the Site assuming no planning

obligations and assuming planning permission is in place.

In assessing the ‘upper parameter’ residual land value, C&W have run an appraisal based on the

proposed residential scheme assuming 100% open market units and zero addition planning obligations

(i.e. no CIL / S106 contributions).

Details of our financial appraisal are summarised within the following report section.

5.2. C&W FINANCIAL APPRAISAL – 0% AFFORDABLE HOUSING

C&W’s financial appraisal in respect of the proposed residential development assuming 0% Affordable

Housing is enclosed within Appendix H and summarised in the table below.

C&W UPPER PARAMETER APPRAISAL – PROPOSED RESIDENTIAL

SCHEME 0% AH

REVENUES

Open Market Sales £46.80M

Total Revenue £46.80M

COSTS



Garage Build Costs £0.085M

Site Works / Abnormals (incl. Prelims, OH&P,

Design Contingency / Risk) £6.56M

Construction Contingency £1.10M


Planning (CIL) n/a




Development Profit (20% of GDV) £9.36M


RESIDUAL LAND VALUE £7.87M

The following section provides details on C&W assessment of Residual Land Value assuming 0%

Affordable Housing, as detailed in the table above.




Open Market Revenue

C&W’s revenue assumptions for the proposed residential scheme incorporating 160 Open Market

dwellings produces a total Gross Development Value (GDV) of £46.80M.

In arriving at our opinion of open market sales rate, C&W considered comparable evidence from new

build residential schemes from within Quedgeley and the wider Gloucester market. Our research is

incorporated within Appendix I.

The market evidence ranges from £229 to £331 per sq ft, with the range in values reflecting location,

quality of scheme, size of units etc.

C&W are of the opinion that the sales evidence from the adjacent Hunts Grove Gate scheme by Crest

Nicholson offers the most comparable evidence given the proximity to the scheme and comparable

location. Our research indicates that sales values for this scheme is in the order of £260 - £300 per sq

ft.

In light of this, the appraisal analysis has therefore assumed a ‘blended’ average sales rate of £280 per

sq ft in respect of the open market accommodation.


Acquisition Costs

Stamp Duty Land Tax is included at the prevailing rate, Agent Fees at 1%, Legal Fees at 0.8% (plus

VAT on fees).

Construction Costs

C&W have consulted BCIS in respect of the base build costs relating to the construction of the

residential dwellings.

BCIS data rebased to the South West as at June 2018 demonstrates that lower quartile build costs for

general estate housing and apartments reflect the following rates (see BCIS summary sheet attached

as Appendix J):

DWELLING TYPE BCIS RATE PER SQ FT

Estate Housing generally £94.48 per sq ft

Flats (apartments) generally £108.98 per sq ft

C&W have reflected these costs within the appraisal. It could be argued that median costs are more

appropriate, however, for the purpose of our analysis we have adopted the above rates.

For clarity, BCIS build costs relate to the cost associated with the physical delivery of the residential

units only (including standard foundations and preliminaries) – all other development costs are excluded

from the above estimates.



Site Works / Abnormals

Aside from the standard unit build costs (where a BCIS rate has been adopted as detailed above) all

other construction costs associated with the scheme have been provided by cost consultants, Alium

Group (dated July 2018 and attached as Appendix K) and are summarised within the table below:

COST ITEM ALIUM GROUP COST

ESTIMATE (MAY 2018)

Site Works and Abnormals

Site Preparation Works £0.72M

External Drainage £0.29M

External Services £0.81M

Extra over Services for residential

(connections to houses) £0.49M

External Works (Roads, Pavings, Gardens

etc) £1.87M

Tree Protection Works (allowance) £0.05M

Four New Retention Ponds £0.32M

Environmental Improvements £0.51M

Other Costs

Preliminaries @ 15% £0.76M

Overheads and Profit @ 7.5% £0.44M

Design Contingency / Risk @ 5% £0.31M

Sub-Total Other Costs £1.51M

TOTAL £6.56M

Contingency

In addition to the Design Contingency / Risk allowance (at 5%) as recommended by Alium Group

(detailed in the table above), C&W’s appraisal accommodates a 5% contingency rate for construction

contingency, applied to both the base build costs (Construction Costs) and Site Works / Abnormals.

Professional Fees

Professional fees have been included at 8% of total costs.


Marketing & Disposal Costs accommodate Marketing Costs, Sale Agent Fees and Legal Fees, as

detailed below:

• Marketing & Sale Agent Fees – C&W have included an allowance of 3% of GDV. This includes an

inclusive cost for the actual sales agents plus marketing fees appropriate for a development of this

nature, such as site advertising and branding, production of marketing brochures and collateral,

show home costs, staffing costs (based in the show rooms), running costs (electricity, security,

maintenance etc.) and associated holding costs which can be significant.

• Legal Fees - C&W has applied £500 per market unit.

Finance Costs

Finance Costs are assumed at a 6% debit rate.

Development Profit

The appraisal accommodates a development profit reflecting a 20% return on GDV (6% on GDV applied

to Affordable dwellings in other scenarios).





• 9-month pre-construction phase;

• 40-month construction phase (average of 4 units per month);

• 40-month sales phase commencing 12 months into the construction period, reflecting a sales

rate of 4 units per month;

• C&W’s appraisal cash-flow assumptions are summarised below:

INPUT C&W VIEW

Open Market Sales Flat-line application over the sales period – 4 market sales

per month

Land Value & Site Acquisition Costs 100% at project commencement

Garage Build Costs S-curve application over the construction period

Construction Costs (Plot Costs) S-curve application over the construction period

Site Works / Abnormals S-curve application over the pre-construction / construction

period



Planning (CIL) n/a

Marketing & Disposal Costs Flat-line application over the sales period

5.6. APPRAISAL SUMMARY

Taking into consideration the appraisal inputs as detailed above, assuming 0% Affordable Housing

contributions, the ‘upper limit’ financial appraisal produces a Residual Land Value of £7.87M.

5.7. BENCHMARK LAND VALUE

By adopting the Shinfield principle as discussed above, C&W have assumed that 50% of the increase

in value between the CUV (£1.17M) and the Residual Land Value based on zero planning contributions

(£7.89M) is shared equally between the Local Planning Authority and the landowner. This is

demonstrated within the table below, and results in a Benchmark Land Value of c. £4.52M:

SHINFIELD PRINCIPLE

Residual Land Value (RLV) with 0% affordable housing

£7.87M

Current Use Value (CUV) £1.17M

Enhancement in value (RLV – CUV) £6.70M

“Equitable split” (half of the enhancement of value between RLV and CUV)

£3.35M

Benchmark Land Value £1.17M + £3.35M

= £4.52M

The Benchmark Land Value represents a value of c. £415K per net developable acre.

Values in Gloucester and the surrounding area for consented residential development land are in the

region of £375K to £550K per acre, dependent on size, configuration, abnormals and agreed planning

obligations.

Drawing upon the above and our knowledge of the local residential land markets, we are satisfied that

the Benchmark Land Value adequately reflects an appropriate value for the Site.



6. C&W FINANCIAL APPRAISALS – RESIDENTIAL

DEVELOPMENT

Having established the Benchmark Land Value, as detailed within the previous report section, it is

against this figure which viability can be tested to assess the extent to which the proposed residential

scheme may be able to support planning contributions as well as delivering a competitive return to the

landowner.

It is therefore essential to establish in the first instance whether a ‘policy compliant’ development

(assuming 30% Affordable Housing provision) would result in a Residual Land Value in line with the

Benchmark Land Value and as such, would be capable of delivering a satisfactory return to the

landowner as well as a policy compliant level of planning contributions.

Failing to achieve a value in line with the Benchmark Land Value would therefore render the policy

compliant position un-viable.

C&W’s financial appraisal in respect of the proposed “policy compliant” residential scheme is enclosed

within Appendix L and summarised in the table below:

C&W APPRAISAL – PROPOSED RESIDENTIAL SCHEME 30% AH

REVENUES

Open Market Sales £33.06M

Affordable Housing Sales £6.87M

Total Revenue £39.93M

COSTS



Garage Build Costs £0.085M

Site Works / Abnormals (incl. Prelims, OH&P,

Design Contingency / Risk) £6.56M

Construction Contingency £1.10M


Planning (CIL) £0.93M




Development Profit £7.12M


RESIDUAL LAND VALUE £3.75M

Benchmark Land Value (BLV) £4.52M

VIABILITY “DEFICIT / SURPLUS” £0.77M “Deficit”

The following report section incorporates details of C&W’s financial appraisal assuming a policy

compliant level of Affordable Housing provision (30% Affordable Housing) as detailed in the table above.

6.1. ACCOMMODATION SCHEDULE

For the purpose of our analysis, we have assumed a straight split of 70% / 30% in terms of unit numbers

between the Open Market and Affordable Housing elements. Our assumptions are detailed within the

table below:



HOUSE TYPE

DESCRIPTION TOTAL NO. OF UNITS

OPEN MARKET DWELLINGS

AFFORDABLE HOUSING

DWELLINGS

A 4 bed detached

house 5 4 1

B 4 bed detached

house 7 5 2

C 3 bed detached

house 3 2 1

F 3 bed semi-

detached house 48 34 14

G 2 bed terrace 8 6 2

H 2 bed semi-

detached house 45 31 14

I (a) Apartment 6 4 2

I (b) Apartment 6 4 2

J 3 bed corner

house 19 13 6

K 3 bed corner

house 13 9 4

TOTALS 160 112 48


Open Market Revenue

C&W’s revenue assumptions in respect of the open market element of the proposed development are

as per the assumptions made within the appraisal detailed above i.e. a ‘blended’ average sales rate of

£280 per sq ft. This results in a total Gross Development Value (GDV) for the open market element of

£33.06M.

Affordable Revenue

C&W’s revenue assumptions for the 48 affordable units produces a total affordable GDV of £6.87M.

This reflects a ‘blended’ average sales rate of £140 per sq ft, equating to 50% of our adopted sales rate

for the market units (£280 per sq ft).


Acquisition Costs

Stamp Duty Land Tax is included at the prevailing rate, Agent Fees at 1%, Legal Fees at 0.8% (plus

VAT on fees).

Construction Costs / Site Works / Abnormals

Costs have been assumed as per the appraisal above, and in line with BCIS estimates (attached as

Appendix J) and the cost report provided by Alium Group (dated May 2018 and attached as Appendix

K).



Contingency

As above, C&W’s appraisal accommodates a 5% contingency rate for Design Contingency / Risk and

5% rate for Construction Contingency.

Professional Fees

Professional fees have been included at 8% of total costs.

Planning (CIL) / S106

CIL has been adopted at a rate of £84.24 per sq m (£7.84 per sq ft) in line with the Council’s CIL

Charging Schedule for Stroud District (applied to the market units only) and updated for indexation.

S106 have not been included within the analysis. Greater clarity from the Council is required in this

regard, as inclusion of any S106 will inevitably impact on the viability outcome.


As above, the Marketing & Disposal Costs accommodate Marketing Costs, Sale Agent Fees and Legal

Fees have been included as follows:

• Marketing & Sale Agent Fees – 3% of GDV;

• Legal Fees - £500 per market unit.

In addition to the above, C&W have included an amount of £10,000 relating to agent’s fee for negotiating

the Affordable Housing agreement with the Registered Provider.

Finance Costs

Finance Costs are assumed at a 6% debit rate.

Development Profit

The appraisal accommodates a development profit reflecting a 20% return on GDV for the Open Market

housing and 6% on GDV for the Affordable Housing element. Overall, assuming delivery of 30%

Affordable Housing, this produces a blended margin of 17.84 profit on GDV%.



• 9-month pre-construction phase;

• 40-month construction phase (average of 4 per month);

• 28-month sales phase commencing 12 months into the construction period, reflecting a sales

rate of 4 units per month in respect of the Open Market dwellings;

• Sales phase of 12 months in respect of the Affordable Housing dwellings (revenue split 50/50

with the first revenue stream at 75% build completion and the remainder post practical

completion;

• C&W’s appraisal cash-flow assumptions are summarised below:



INPUT C&W VIEW

Open Market Sales Flat-line application over the sales period – 4 market sales

per month

Affordable Housing Sales

Flat-line application over the sales period split in two equal

tranches (at 75% completion of construction phase and at

practical completion)

Land Value & Site Acquisition Costs 100% at project commencement

Garage Build Costs S-curve application over the construction period

Construction Costs (Plot Costs) S-curve application over the construction period

Site Preparation Works S-curve application over the pre-construction period

External Drainage S-curve application over the construction period

External Services S-curve application over the construction period

Extra over Services for residential

(connections to houses) S-curve application over the construction period

External Works (Roads, Pavings, Gardens

etc) S-curve application over the construction period

Tree Protection Works (allowance) S-curve application over the construction period

Four New Retention Ponds S-curve application over the construction period

Environmental Improvements S-curve application over the construction period

Preliminaries Linked to construction costs

Overheads and Profit Linked to construction costs



Planning (CIL) N/A

Marketing & Disposal Costs Flat-line application over the sales period

6.5. APPRAISAL SUMMARY

Taking into consideration the appraisal inputs as detailed above, the “policy compliant” financial

appraisal assuming the delivery of 30% Affordable Housing produces a Residual Land Value of £3.75M.

6.6. VIABILIY CONCLUSION

C&W’s financial appraisal produces a residual land value of £3.75M. When compared against the

Benchmark Land Value of £4.52M, this results in a viability “deficit” of £0.77M.

In conclusion therefore, a “policy compliant” scheme offering 30% Affordable Housing therefore cannot

be supported in viability terms.



7. SENSITIVITY ANALYSIS – IMPACT OF REDUCED

PLANNING OBLIGATIONS

7.1. SENSITIVITY TESTING

C&W have undertaken a level of sensitivity testing in order to provide an indication of the impact of

reducing the planning obligations on the viability position. The scenarios tested are as follows:

• Scenario 1 – 20% Affordable Housing including CIL contribution and £0 S106;

• Scenario 2 – 22% Affordable Housing including CIL contribution and £0 S106.

C&W’s financial appraisals in respect of the above tested scenarios are enclosed within Appendix M

and summarised in the table below, alongside the “Base Case” policy compliant scenario:

7.2. APPRAISAL SUMMARIES

APPRAISAL INPUT

“POLICY

COMPLIANT”

(BASE CASE)

30%

AFFORDABLE

HOUSING

SCENARIO 1

20%

AFFORDABLE

HOUSING

SCENARIO 2

22%

AFFORDABLE

HOUSING

REVENUES

Open Market Sales £33.06M £37.08M £36.12M

Affordable Housing Sales £6.87M £4.86M £5.34M

Total Revenue £39.93M £41.94M £41.46M

COSTS

Site Acquisition Costs £0.33M £0.36M £0.25M

Construction Costs (Plot

Costs) £15.57M £15.57M £15.57M

Garage Build Costs £0.085M £0.085M £0.085M

Site Works / Abnormals (incl.

Prelims, OH&P, Design

Contingency / Risk)

£6.56M £6.56M £6.56M

Construction Contingency £1.10M £1.10M £1.10M

Professional Fees £1.78M £1.78M £1.78M

Planning (CIL) £0.93M £1.04M £1.01M

Marketing & Disposal Costs £1.06M £1.19M £1.16M

Finance Costs £1.65M £1.79M £1.71M

Total Costs (Excluding

Profit) £29.05M £29.46M £29.31M

Development Profit £7.12M £7.80M £7.66M

Total Costs (Including

Profit) £36.18M £37.26M £36.97M

RESIDUAL LAND VALUE £3.75M £4.68M £4.49M

Benchmark Land Value (BLV) £4.52M £4.52M £4.52M

VIABILITY “DEFICIT /

SURPLUS”

£0.77M

“DEFICIT”

£0.16M

“SURPLUS”

£0.03M

“DEFICIT”



7.3. VIABILITY CONCLUSION

• Scenario 1 – 20% Affordable Housing – the proposed scheme is viable producing a Residual Land

Value of £4.68M resulting in a viability “surplus” of £0.16M when compared against the Benchmark

Land Value (£4.52M).

• Scenario 2 – 22% Affordable Housing – the proposed scheme is unviable producing a Residual

Land Value of £4.49M resulting in a marginal viability “deficit” of £0.03M when compared against

the Benchmark Land Value (£4.52M).



8. C&W ANALYSIS & CONCLUSIONS

8.1. CONCLUSION

C&W’s analysis above has shown that, due to the brownfield nature of the Site and the costs associated

with delivering the employment scheme (site infrastructure, abnormals, servicing etc.), the proposed

industrial scheme as described within this report is not deliverable in viability terms.

C&W’s financial appraisal of the proposed industrial scheme resulted in a Residual Land Value of

-£0.571M. This does not constitute a ‘competitive return’ which incentivises the landowner to release

the land for development and is clearly against guidance set out in the NPPF and RICS Financial

Viability GN.

It is therefore C&W’s view, that if the Site is to be brought forward for development, alternative, higher

value uses must be considered.

In light of this, this report has also considered the viability of the proposed residential development,

incorporating 160 dwellings, incorporating a mix of apartments and two to four-bedroom houses.

If a development is to progress at the Site, it is essential that a deliverable planning position is agreed

which provides the landowner with a competitive return for releasing the land and the planning authority

with an adequate level of planning contributions.

C&W’s policy compliant appraisal (assuming 30% Affordable Housing) produces a Residual Land Value

of £3.75M, which results in a viability “deficit” of £0.77M when compared to the Benchmark Land Value

(£4.52M), which indicates that the proposed residential scheme cannot viably support policy compliant

level of planning obligations including Affordable Housing (i.e. 30%) and CIL contributions, particularly

in the context of the Site’s delivery challenges and abnormal costs.

The above sensitivity analysis demonstrates that the proposed residential scheme may be capable of

supporting c. 20% Affordable Housing provision. At this level of Affordable Housing, plus CIL

contributions of c. £1.04M, the scheme delivers a positive Residual Land Value of £4.68M which reflects

a marginal viability “surplus” of £0.16M against the Benchmark Land Value of £4.52M.

We would note, that whilst C&W’s appraisals have included CIL contributions, S106 costs have not

been included. Greater clarity will be required in respect of likely requirements in this regard, as this will

inevitably impact on the viability outcome.



Appendix A – Red Line Site Plan

Filter Beds

Shorn Brook

ESS

(disused)

Quedgeley Distribution

ESS

Pond

Pond

MS

BRIS

T OL

RO

AD

Pur

t on

Co t

tage

Wa y

s id e

Ca r

p sc o

tSt Crispin

Police Station

Mast

El Sub Sta

The Old

Highways

1

The Perry Centre

ESS

13

1

7

4

15

12

2

Wheatstone Court

Centre

E l Sub S ta

15

8

ESS 16

18

14

17

7

Approx. 20 acres

0m 50m 100m 150m

Quadrant Distribution CentreGloucester - Remaining Land

Ordnance Survey © Crown Copyright 2010. All rights reserved. Licence number 100020449.Getmapping plc 2010. Plotted Scale - 1:3500

PDF created with pdfFactory trial version www.software-partners.co.uk

http://www.software-partners.co.uk



Appendix B – Indicative Scheme Plan – Industrial



Appendix C – Indicative Scheme Plans – Residential

D

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A38

S

h

o

rn

B

ro

o

k

Proposed Housing

Bed

3

3

B

ed

B

e

d

Proposed Industrial

Buildings under

Construction

Bed

3

2

B

ed

2

2

3

3

Bed

3

2

Bed

2

Bed

3

Bed

Bed

B

e

d

B

e

d

2

3

B

e

d

B

e

d

3

3

2

+29.5

B

e

d

2

P

B

ed

2

2

3

Bed

B

e

d

Bed

Bed

2

B

e

d

2

B

ed

B

ed

3

1.11

B

e

d

1.15

B

e

d

B

e

d

3

3

B

e

d

3

B

e

d

3

2

B

e

d

3

B

e

d

B

e

d

3.11

B

e

d

3.16

3

B

e

d

3

6.8

6.13

2

4.11

6.15

6.6

Bed

7.1

6.10

1.14

6.17

6.14

1.13

7.6

1.8

8.2

1.10

7.2

7.3

7.9

6.9

7.7

7.8

7.11

7.10

B

e

d

2.15

3

8.6

3

8.8

8.4

8.9

B

e

d

8.11

8.15

8.16

2.9

3.15

9.7

9.8

9.10

3

B

e

d

2

3

B

e

d

3.25

3.22

3

9.11

3

Bed

3.21

Bed

3

3

Bed

3

Bed

6.16

3

8.7

Bed

Bed

8.10

5.7

Bed

7.12

7.5

2

2

B

e

d

9.2

B

e

d

2

2

9.16

B

e

d

2

B

e

d

2

2

B

e

d

3

Bed

3

Bed

Bed

3

3

Bed

Bed

B

e

d

2

B

e

d

B

e

d

2

2

B

e

d

PLOT 1

15

2

PLOT 6

19

PLOT 2

23

PLOT 5

18

PLOT 8

20

3

PLOT 4

11

PLOT 3

26

PLOT 9

16

3

Bed

Bed

3

3

Bed

2

Bed

Bed

2

3

B

e

d

Bed

Bed

3

Bed

2

Bed

3

2

Bed

B

e

d

3

3

Bed

3

2

Be

d

2

Be

d

Fla

t

2

Be

d

2

B

e

d

F

la

t

2

B

e

d

F

la

t

4

B

e

d

4 B

ed

4

B

e

d

Fla

t

4

B

e

d

2

Be

d

B

e

d

2

2

B

e

d

2

B

e

d

2

B

e

d

B

e

d

2

B

e

d

2

2

Bed

2

2

Bed

B

e

d

2

B

e

d

B

e

d

B

e

d

Bed

2

Bed

3

B

e

d

3 B

ed

3

3 B

ed

3 B

ed

3

B

e

d

3

B

e

d

3

B

e

d

3 B

ed

Bed

2

2

B

e

d

F

l

a

t

3

B

e

d

F

l

a

t

3 B

ed

2.3

2.1/2

1.9

1.7

1.12

1.3

1.6

1.5

1.2

2.13

1.1

2.4

2.14

2.17

1.4

2.18

2.23

2.19

2.20

3.2

2.5/6

2.16

2.10

2.21

3.1

2.22

3.3

2.7/8

3.6

3.13

3.8

2.11/12

3.14

3.7

3.10

3.4

3.9

3.5

4.9

3.18

3.12

3.17

3.24

3.20

3.23

4.2

3.19

4.1

3.26

4.3

5.6

4.8

4.10

4.6

4.5

4.4

5.3

5.1

4.7

5.5

5.2

5.9

5.4

5.8

6.7

5.10

7.4

6.12

6.11

8.1

8.5

8.3

9.13

8.18

9.12

9.1

8.13/14

8.17

8.12

8.19/20

9.6

9.3

9.4

9.5

9.14

2

2

9.15

Bed

4

B

e

d

3

4

B

e

d

9.9

3

4

B

e

d

Bed

3

3

3

Bed

Bed

Bed

3

B

e

d

3

Bed

B

e

d

3

Bed

3

Bed

3

3 Bed

3

B

e

d

3

B

e

d

Bed

3 B

ed

3 B

ed

3 B

ed

3 B

ed

PB

3 Bed

3 Bed

3 B

ed

PLOT 7

12

3

B

e

d

Proposed Industrial Buildings

PB

PB

Industrial

Industrial

Residential

Industrial

+24

+24

+24

+24

TOTAL HOUSING

UNITS 160

+29.5

+28

3

Be

d

3

Be

d3 B

ed

6.2

6.1

4 B

ed

6.3

6.4

6.19

B

e

d

4

B

e

d

B

e

d

2

2

6.5

6.18

3

Be

d3 B

ed

3

Be

d

5.15

5.13

5.14

5.16

4 B

ed

5

.1

7

3

B

e

d

4 Bed

3

B

e

d

5.11

5.12

5.18

4 Bed

S

S

+28

+27

+26

+23.50

+23.75

+21.9

+21.5

23+

+22.5

+23.96

+26

S

+22.5

+22.5

+23

PB

+25 +24

+24

C:\Users\KATIE\Dropbox (Higgs Young)\Projects\17\17050 Quedgeley Gloucester\dwg\17050(P)202B.dwg DRAWING REFERENCES:

DO NOT SCALE FROM DRAWING, ALL DIMENSIONS, LEVELS, COORDINATES, SETTING OUT, TO BE CHECKED ON SITE AND ANY DISCREPANCY REPORTED IMMEDIATELY TO THE ARCHTECT AND PROJECT MANAGER.

DRAWING NUMBER

17050(P)202B

PROPOSED MASTERPLAN

DRAWING NAMEPROJECT

QUEDGELEY GLOUCESTER

SCALE

1:1000 @ A1

STATUS

PRELIMINARY

DATE

22-01-18

rev B: 02-07-18

rev A: 26-03-18

REVISIONSCLIENT

Hansteen Holding PLC

HIGGS YOUNG ARCHITECTS LTD

54 BOSTON PLACE

LONDON NW1 6ER

Tel: 0044 (0)20 7724 9395

E-mail: [email protected]

D

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Proposed Housing

3

Bed

Bed

3

3

B

e

d

Bed

9

.1

1

2.4

3

.2

2

7.8

1.5

2.3

2.16

2.18

2.23

2.7/8

3.14

5.1

7.4

3.15

8.11

3 B

ed

3 B

ed

3

3

B

ed

Proposed Industrial

Buildings under

Construction

Bed

3

B

e

d

2

3

Bed

3

3

B

ed

2

3

Bed

Bed

Bed

2

1.11

1.15

3.11

3.16

6.8

6.13

4.11

6.15

6.6

7.1

6.10

1.14

6.17

6.14

1.13

7.6

1.8

8.2

1.10

7.2

7.3

7.9

6.9

7.7

7.11

7.10

2.15

8.6

8.8

8.4

8.9

8.15

8.16

2.9

9.7

9.8

9

.1

0

3.25

Bed

3.21

3

3

3

Bed

6.16

8.7

8.10

5.7

7.12

7.5

9.2

9.16

3

Bed

3

Bed

BedBed

Bed

3

Bed

3

3

Bed

Bed

3

Bed

B

e

d

3

3

3

Bed

2

B

e

d

2

B

e

d

F

la

t

2

B

e

d

2

B

e

d

F

la

t

2

B

e

d

F

la

t

4

B

e

d

4 B

ed

4

B

e

d

F

la

t

4

B

e

d

2

B

e

d

3

B

e

d

3 B

ed

3 B

ed

3 B

ed

1.9

2.1/2

1.12

1.7

1.31.1

1.6

2.13

1.2

2.17

2.14

1.4

2.19

2.20

3.2

2.5/6

2.10

2.21

3.3

2.22

3.1

3.6

3.13

3.4

3.8

2.11/12

3.10

3.9

3.7

3.12

3.5

3.18

4.9

3.24

3

.1

7

3.20

3.23

4.2

3.19

4.1

3.26

4.3

5.6

4.8

4.10

4.6

4.5

4.4

5.3

5.9

4.7

5.5

5.2

5.10

5.4

5.8

6.7

8.1

6.11

6.12

8.3

8.5

8.18

9.13

9.1

9.12

8.12

8.13/14

8.17

8.19/20

9.6

9.3

9.4

9.5

9.14

9.15

Bed

4

B

e

d

3

4

B

e

d

9.9

4

B

e

d

3

Bed

3

Bed

B

e

d

3

3 Bed

3

B

e

d

3

B

e

d

3 B

ed

PB

3 Bed

3

B

e

d

Proposed Industrial Buildings

PB

PB

Industrial

Industrial

Residential

Industrial

+22.5

+24

+24

+24

+24

+23.50

+21.9

23+

Be

d

5.14

+28

2

3

B

e

d

Bed

3

Bed

Bed

2

2

2

B

e

d

B

e

d

2

B

e

d

3

B

e

d

3

B

e

d

B

e

d

2

2

B

e

d

2

B

e

d

B

e

d

2

Bed

B

e

d

3

B

e

d

3

2

2

B

e

d

2

B

e

d

B

e

d

B

e

d

+26

Bed

+22.5

B

e

d

3 B

ed

+22.5

+23.96

+28

3 B

ed

+28

B

e

d

6.2

6.1

4 B

ed

6.3

6.4

6.19

4

B

e

d

6.5

6.18

3

3 B

ed

3

Be

d

5.15

5.13

5.16

4 B

ed

3

B

e

d

5.17

4 Bed

3

B

e

d

5.115.12

5.18

4 Bed

+27

+25

P

S

2

B

e

d

F

la

t

2

B

e

d

F

la

t

2

B

ed

2

B

e

d

2

B

e

d

2

B

e

d

2

B

e

d

2

B

e

d

B

e

d

3

Bed

3

Bed

3

B

e

d

3

B

e

d

3

B

e

d

3

B

e

d

3

2

B

e

d

3 B

ed

2

Bed

2

Bed

2

Bed

2

B

e

d

3 Bed

2

Bed

2

Bed

2

Bed

2

Bed

B

e

d

3

3

B

e

d

B

e

d

3

B

e

d

2

B

e

d

B

e

d

2

2

2

B

e

d

2

2

B

e

d

B

e

d

Be

d

3

Be

d

3

2

B

e

d

2

B

e

d

4

B

e

d

4

B

e

d

Bed

3

Bed

3

B

e

d

3

B

e

d

3

B

e

d

3

Bed

Be

d

3

Be

d

2

3

Bed

Bed

2

3 3

B

e

d

2

Bed

2

2

B

e

d

Bed

3

B

e

d

3

2

2

B

e

d

B

e

d

3

B

e

d

3

B

e

d

B

e

d

2

2

B

e

d

B

e

d

B

e

d

2

2

3

B

e

d

B

e

d

2

2

2

3

B

e

d

B

e

d

2

B

e

d

3

B

e

d

2

B

e

d

S

B

e

d

3

3

B

e

d

3

+22.5

+21.5

PB

+25 +24

+24

2

C:\Users\KATIE\Dropbox (Higgs Young)\Projects\17\17050 Quedgeley Gloucester\dwg\17050(P)204C.dwg DRAWING REFERENCES:

DO NOT SCALE FROM DRAWING, ALL DIMENSIONS, LEVELS, COORDINATES, SETTING OUT, TO BE CHECKED ON SITE AND ANY DISCREPANCY REPORTED IMMEDIATELY TO THE ARCHTECT AND PROJECT MANAGER.

DRAWING NUMBER

17050(P)204C

PROPOSED MASTERPLAN

OPTION 2

DRAWING NAMEPROJECT

QUEDGELEY GLOUCESTER

SCALE

1:1000 @ A1

STATUS

PRELIMINARY

DATE

24-01-18

rev C: 02-07-18

rev B: 20-03-18

rev A: 26-02-18

REVISIONSCLIENT

Hansteen Holding PLC

HIGGS YOUNG ARCHITECTS LTD

54 BOSTON PLACE

LONDON NW1 6ER

Tel: 0044 (0)20 7724 9395

E-mail: [email protected]



Appendix D – C&W Financial Appraisal, Industrial

Scheme

Quedgeley, Industrial Development Option Land at Davy Way, Gloucester C&W Development Appriasal

Development Appraisal Cushman & Wakefield (Europe)

10 July 2018

APPRAISAL SUMMARY CUSHMAN & WAKEFIELD (EUROPE) Quedgeley, Industrial Development Option Land at Davy Way, Gloucester C&W Development Appriasal

Summary Appraisal for Merged Phases 1 2 3

Currency in £

REVENUE

Rental Area Summary Initial Net Rent Initial Units ft² Rent Rate ft² MRV/Unit at Sale MRV

Unit 1 1 100,000 6.25 625,000 625,000 625,000 2,500 Unit 5 12,500 8.00 20,000 100,000 100,000 3,000 Unit 2 6,000 8.00 24,000 48,000 48,000 4,000 Unit 1 4,000 7.50 30,000 30,000 30,000 5,000 Unit 9 45,000 7.50 37,500 337,500 337,500 6,000 Unit 4 24,000 7.50 45,000 180,000 180,000 Unit 3 1 20,000 7.00 140,000 140,000 140,000 Unit 4 1 40,000 7.00 280,000 280,000 280,000 Unit 2 1 30,000 7.00 210,000 210,000 210,000 Totals 25 281,500 1,950,500 1,950,500

Investment Valuation Unit 1 Market Rent 625,000 YP @ 5.0000% 20.0000 (9mths Rent Free) PV 9mths @ 5.0000% 0.9641 12,050,860 2,500 Unit Current Rent 100,000 YP @ 6.5000% 15.3846 1,538,462 Rent Free (100,000) YP 6mths @ 6.5000% 0.4769

PV 2yrs @ 6.5000% 0.8817 (42,044) 1,496,417

3,000 Unit Current Rent 48,000 YP @ 6.5000% 15.3846 738,462 Rent Free (48,000) YP 6mths @ 6.5000% 0.4769

PV 2yrs 9mths @ 6.5000% 0.8410 (19,250) 719,211

4,000 Unit Current Rent 30,000 YP @ 6.5000% 15.3846 461,538 Rent Free (30,000) YP 6mths @ 6.5000% 0.4769

PV 3yrs 6mths @ 6.5000% 0.8022 (11,476) 450,062

5,000 Unit Current Rent 337,500 YP @ 6.5000% 15.3846 5,192,308 Rent Free (337,500) YP 6mths @ 6.5000% 0.4769

PV 4yrs @ 6.5000% 0.7773 (125,106) 5,067,201

6,000 Unit Market Rent 180,000 YP @ 6.5000% 15.3846 (3mths Unexpired Rent Free) PV 3mths @ 6.5000% 0.9844 2,725,974 Renewal Rent Free (180,000) YP 6mths @ 6.5000% 0.4769

PV 4yrs 9mths @ 6.5000% 0.7415 (63,645) 2,662,329

Unit 3 Current Rent 140,000 YP @ 6.5000% 15.3846 2,153,846 Unit 4 Current Rent 280,000 YP @ 6.5000% 15.3846 4,307,692 Unit 2 Market Rent 210,000 YP @ 6.5000% 15.3846 (3mths Unexpired Rent Free) PV 3mths @ 6.5000% 0.9844 3,180,303

32,087,923

GROSS DEVELOPMENT VALUE 32,087,923

Purchaser's Costs (2,181,979) Effective Purchaser's Costs Rate 6.80% (2,181,979)

NET DEVELOPMENT VALUE 29,905,944

Income from Tenants 2,500 Unit 250,000 3,000 Unit 84,000 4,000 Unit 30,000 5,000 Unit 168,750 Unit 3 70,000 Unit 4 70,000

672,750

NET REALISATION 30,578,694

OUTLAY

ACQUISITION COSTS Residualised Price 1,599,441 Residualised Price (Negative land) (2,170,432)

Project: Quedgeley, Industrial Development Option ARGUS Developer Version: 8.00.000 Date: 10/07/2018

APPRAISAL SUMMARY CUSHMAN & WAKEFIELD (EUROPE) Quedgeley, Industrial Development Option Land at Davy Way, Gloucester C&W Development Appriasal

(570,991) Stamp Duty 5.00% 79,972 Agent Fee 1.00% 15,994 Legal Fee 0.80% 12,796

108,762 CONSTRUCTION COSTS Construction ft² Build Rate ft² Cost

Unit 1 100,000 48.50 4,850,000 2,500 Unit 12,500 81.38 1,017,250 3,000 Unit 6,000 81.38 488,280 4,000 Unit 4,000 81.38 325,520 5,000 Unit 45,000 81.38 3,662,100 6,000 Unit 24,000 57.04 1,368,960 Unit 3 20,000 57.04 1,140,800 Unit 4 40,000 48.50 1,940,000 Unit 2 30,000 48.50 1,455,000 Totals 281,500 16,247,910 16,247,910

Contingency 5.00% 812,395 812,395

Other Construction Phase 1 Infra/Abnormal Costs 2,185,318 Phase 2 Infra/Abnormal Costs 1,903,903 Phase 3 Infra/Abnormal Costs 1,940,168

6,029,389

PROFESSIONAL FEES Professional Fees 6.00% 1,336,638

1,336,638 MARKETING & LETTING

Letting Agent Fee 10.00% 195,050 Letting Legal Fee 5.00% 97,525

292,575 FINANCE

Debit Rate 6.000%, Credit Rate 0.000% (Nominal) Total Finance Cost 1,370,692

TOTAL COSTS 25,627,370

PROFIT 4,951,324

Performance Measures Profit on Cost% 19.32% Profit on GDV% 15.43% Profit on NDV% 16.56% Development Yield% (on Rent) 7.61% Equivalent Yield% (Nominal) 5.93% Equivalent Yield% (True) 6.15%

IRR 21.77%

Rent Cover 2 yrs 6 mths Profit Erosion (finance rate 6.000) 2 yrs 12 mths

Project: Quedgeley, Industrial Development Option ARGUS Developer Version: 8.00.000 Date: 10/07/2018



Appendix E – Knight Frank Marketing Report – June

2018

Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN where you may look at a list of members’ names.

Historic Marketing and Interest (2005-

2018)

Quadrant Business Park, Quedgeley,

Gloucester

Prepared on behalf of Hansteen Holdings Plc

11 June 2018

Contact details

Hansteen Holdings Plc

Estate Office, 1 Centre Court, Treforest Industrial Estate, Pontypridd, Mid Glamorgan, CF37 5YR

[email protected]

Knight Frank LLP, Tyndall House, 17 Whiteladies Road, Bristol, BS8 1PB

Russell Crofts MRICS, 0117 917 4535, [email protected]

Historic Marketing and Interest (2005-2018) Quadrant Business Park, Quedgeley, Gloucester Page 2 Prepared on behalf of Hansteen Holdings Plc 11 June 2018

1 Introduction

Knight Frank have been involved in the marketing of the brownfield development land at Quadrant Business Park,

Gloucester since 2010 in both strategic and open marketing roles.

Initially our brief was to provide advice as to how best to bring forward the site to make it deliverable for potential

occupiers. Once a number for these issues had been addressed our brief expanded to include open marketing to

attract occupiers.

2 Strategic and Masterplanning

We attended a number of meetings with the full consultancy team to assess the issues that were preventing

development and ensure that these could be dealt with. The object of the exercise was to be able to identify to a

number of key elements as part of the development programme:

1) Total capacity of the site both in terms of single sided and cross docked distribution uses 2) Access arrangements for high volume HGV users and local highways considerations 3) Services Capacities and lead in times for additional services 4) Topography and suitability for large format floorplates 5) Flooding and water attenuation solutions 6) Ecology – current and management 7) Planning – massing and design (eaves heights, loading yards) 8) Noise or Hours of Use restrictions 9) Proximity of residential to boundaries – current and future 10) Contamination and remediation

Over a period of approximately 12 months the majority of the above issues were addressed. Where there was an

immediate technical solution this was designed and costed as part of the delivery programme. Of particular note

were some small “hotspots” of contamination, water attenuation and the need to mitigate water flow to the

southern boundary, topography, and the ability to enlarge services. All of these elements added an element of

“abnormal” costs when compared with a similar greenfield site free of constraints.

Once the above had been addressed, the team drew up a programme for delivery that could be included in

timescales for delivery of a unit for a potential occupier. These costs were significant, and the shape and size of

the proposed unit were yet to be agreed with an occupier. In essence, we were seeking to prepare a site that was

as close to “development ready” as possible to be able to take it to the market. As part of the campaign, we were

then confident that where there were outstanding technical issues we already had a solution that would stand up

to robust due diligence.


3 Marketing

As a leading logistics and distribution agent in the South West we were aware of all of the requirements that came

forward in the following years. In many cases we were responding in competition both on a local basis, and more

frequently on a regional basis. The market started its post recession recovery in 2014/2015 and there were more

requirements from manufacturers, distributors and retailers as trading volumes increased.

With a strong online and market based presence we were able to react to all requirements of differing unit sizes,

and particularly where the occupier required a bespoke solution.

4 Occupiers & Requirements

Occupier Size Specification Comments

Supergroup

750,000-

800,000sq ft

Cross Docked

10% office content

Ability to add a further

100,000sq ft

Appointed third party to undertake distribution

function (Clipper) who had spare capacity in

their network at Burton-on-Trent.

Waitrose

300,000sq ft Single sided loading

5% office content

Included in option list down to last two

locations

Opted to secure a site at Central Park, Bristol

Eventually didn’t complete acquisition owing

to losing market share to discount retailers

DHL Tradeteam


Mixture of dock level

loading and surface

level

10% office content

Relocation from Metz Way

Acquired “High Roller” existing building on

Gloucester Business Park

TBS


15% office content

Relocation from Cheltenham

Secured a FH site and building at Gloucester

Business Park

Recently completed

GE Dowty


High office content

Relocation from Cheltenham following fire

Secured a LH building on Gloucester

Business Park


Farmfoods


Temperature controlled

Ability to add 100,000sq

ft

5% office content

Secured a site a Central Park, Bristol and

developed own building

Amazon


with limited dock level

access

Van based fleet/access

No office content

Considered Design and Build options along

M5

Secured existing building at Crossflow, Cabot

Park, Bristol

Roper Rhodes

150,000-

180,000sq ft

Single Sided Loading

Up to 18m eaves

Minimal office content

Initially focussed on Bath, with search area

expanded to Gloucestershire

Downton

300,000sq ft Single Sided loading

Surface loading

Minimal office content

Magners/Corona contract

Relocation from Western Approach, Bristol

Secured existing building in Chepstow

Eastbrook

100,000-

150,000sq ft

Preference for land

purchase

Gloucester to

Tewkesbury

Will only access site from

Kohler Mira

180,000-

200,000sq ft

Single sided loading

Docks and surface

access

Up to 20% office

content

Three rounds of bidding over 5 year period

Understood to have agreed terms in

Gloucester (unknown location)

Furlong Flooring 180,000-

200,000sq ft

Preference for existing

building

Freehold

Purchased former Unite Building at

Stonehouse

DHL

150,000sq ft Cross docked

Temperature Controlled

to part

Many dock level doors

Purchased land at Central Park, Bristol

Self developed building and undertook Sale &

Leaseback


All of the above named occupiers were in discussion on the subject site. Not all concluded their search with

undertaking an acquisition, but many did. One of the key drivers in a good proportion of the above locating at

Central Park, Bristol was the pre-development site preparation undertaken by the developer, together with a very

unusual planning position where an open B8 consent was in place.

5 Site Sales

During the marketing process there were a number of parties who would consider a purchase of part of the

site. This approach presented the issue of the initial infrastructure investment to access the plots, as well as the

need for establishing a masterplan (and therefore plot layout).

In terms of infrastructure cost, there was a need for the receipts from the sale to exceed the costs of the additional

infrastructure to generate a positive net receipt. Therefore the quantum of the sale was to be sufficient to

generate income in excess of the base “book value” of the land, together with covering the costs of extension of

the roads and services, any site contamination clean up, site levelling and ecology. In addition, following this

route required the establishment of a flooding and water attenuation strategy. Specifically addressing the flooding

and water attenuation, the scheme needed to be comprehensive for the whole land holding and therefore the

solution could occupy a significant land take. In this instance, the net developable land given over to a flood

mitigation solution could be in the order of 1-2 acres – therefore nullifying small land plot sales.

In undertaking the sale of a smaller plot, there is the need to settle on a masterplan for the whole, by breaking up

the wider land holding. This is a compromise, and sets the strategy for the future by excluding the ability to

accommodate larger requirements. In this instance the land value therefore needs to escalate the reflect the

additional road and services costs to be spread across the whole plot, together with the loss of net developable

land.

During the marketing process, the following offers were received for smaller plots sizes:

Name Plot Size Use Offer (£/acre)

Downton Distribution 3 acres Trailer Parking £350,000

Chancerygate

Developments

5 acres Multi-let industrial

development

£400,000

Imperial Commercials 2.5 acres HGV dealership and

workshop

£425,000


6 Competing Sites

On a local level the following sites were directly competing:

Address Developer Size Planning

Status

Comments

Centre Severn,

Barnwood,

Gloucester

Peveril Securities 40 acres Outline B8 Ecology clearance recently

completed

Some internal infrastructure

Awaiting completion of access

improvements to A38 by Glos

CC/Highways

Spinnaker Park n/a 20 acres None Understood to have unknown fill

imported into site historically. Until

this can be identified then little

prospect of development as

remediation cost unknown

Javelin Park Graftongate c.20 acres Outline B8 Adjacent to new incinerator under

construction at J12 M5

Infrastructure in place

Gloucester

Business Park

Goodman/TPG c.22 acres Allocated

“industrial”

Greenfield site that needs ecology

“sweep”

Infrastructure in place

Quedgeley East St Modwen c.45 acres Awaiting

planning

consent

Large format B8 in masterplan

Planning application held up by

Highways and concerns over

capacity at J12 M5

All of these sites have been available since the market matured (2014 onwards) and varying levels of pre-

development preparation has been undertaken. The occupier schedule above demonstrates that Gloucester

Business Park is the only scheme that has been successful in attracting occupier during this time.



Appendix F – BCIS Summary Sheet – Industrial

Description: Rate per m2 gross internal floor area for the building Cost including prelims. Last updated: 09Jun2018 12:20

Rebased to South West Region ( 98; sample 867 )

£/m2 study

Maximum age of results: Default period

Building function (Maximum age of projects)

£/m² gross internal floor areaSample

Mean Lowest Lower quartiles Median Upper quartiles Highest

New build

284. Warehouses/stores

Generally (15) 897 317 539 767 1,051 4,105 51

Up to 500m2 GFA (15) 1,608 583 876 1,118 1,896 4,105 8

500 to 2000m2 GFA (15) 871 430 614 841 1,096 1,483 15

Over 2000m2 GFA (15) 709 317 522 596 852 1,368 28

284.2 Purpose builtwarehouses/stores

Generally (15) 961 317 583 767 1,114 4,105 37

Up to 500m2 GFA (15) 1,857 583 1,080 1,439 2,319 4,105 6

500 to 2000m2 GFA (15) 847 430 593 748 1,031 1,483 13

Over 2000m2 GFA (15) 745 317 528 710 877 1,368 18

13Jun2018 15:41 © RICS 2018 Page 1 of 1



Appendix G – Gleeds Costs Estimate (May 2018) &

Order of Cost Estimate (Addendum) (June 2018)

ORDER OF COST ESTIMATE

QUEDGLEY PHASE III - ENABLING WORKS

For:

Project No: LNCM XXXX

Issue 4.0

Date: May 2018

Gleeds Cost Management Limited

95 New Cavendish Street, London W1W 6XF

T: 0207 6317000www.gleeds.com

http://www.gleeds.com/

QDC QUEDGELEY PHASE III

ENABLING WORKS


CONTENTS

Contents Page

1.0 Summary 3

2.0 Main Works Calculations 4

3.0 Abnormal Construction Costs 7

4.0 Assumptions 8

5.0 General Exclusions 9

6.0 Project Specific Exclusions 10

7.0 Schedule of Drawings 11

8.0 Pricing Notes 12

2


ENABLING WORKS


Base Date: 2Q2018

m² ft² TOTAL £ £/m² £/ft² Percentage

of Cost

Site Preparation Works 864,949 15.26%

Roads, Paths, Pavings and Surfacings 2,538,748 44.80%

Fencing 201,783 3.56%

External Drainage 556,840 9.83%

External Services 977,666 17.25%

SUB TOTAL 5,139,986 90.70%

Main Contractor Costs1 Allowance For Main Contractors Preliminaries 15.0% Included above

2 Allowance For Main Contractors Overhead & Profit 5.00% Included above

TOTAL COST EXCL. RISK & INFLATION £5,139,986 90.70%

Risk & Inflation1 Design Development Risk 5.00% 256,999 4.54%

2 Construction Risk 5.00% 269,849 4.76%

TOTAL AT BASE DATE £5,666,834 100.00%

1 Tender price inflation to start on site date Incl Above - -

2 Building cost inflation to construction mid point Excluded - -

TOTAL ESTIMATED COST AT CURRENT DAY £5,666,834 100.00%

£5,670,000 100.00%TOTAL ESTIMATED COST AT CURRENT DAY (Rounded)

Section 1 : MAIN SUMMARY

Based on PRC Architects drawings

3


ENABLING WORKS


Base Date: 2Q2018

Section 2 : MAIN WORKS CALCULATIONS

Quantity Quantity ft² Unit RATE £ Rate £/ft² TOTAL

1 SITE PREPARATION WORKS

aNotional allowance for contamination removal (based upon site investigations risk of

contamation deemed to be minor)

1 Item 50,000.00 50,000

b Notional allowance for site vegetation strip 81,810 m² 0.25 20,453

c Nominal 300mm strip off existing level 24,543 m³ 1.50 36,815

d Cart topsoil on site to temp spoil heaps and later cart back 24,543 m³ 4.00 98,172

e Filling topsoil to bunds and soft landscaping areas 24,543 m³ 2.00 49,086

f Excavate to required level (Cut) 45,777 m³ 1.50 68,666

g Cart subsoil on site to temp spoil heaps and later cart back 45,777 m³ 4.00 183,108

h Filling to make up levels 583 m³ 2.00 1,166

j Level and compact bottom of excavation 81,810 m² 0.50 40,905

k Notional allowance for forming bunds (scope of works yet to be defined) 1 Item 75,000.00 75,000

SUB-TOTAL SITE PREPARATION WORKS 623,370

Preliminaries @ 15% 93,505

OHP @ 5% 35,844

Inflation from Q1 2016 to Q2 2018 Based on BCIS TPI @ 14.91% 112,230

TOTAL SITE PREPARATION WORKS (To Summary) 864,949

2 ROADS, PATHS, PAVINGS & SURFACINGS

a Compacted 6F2 stone spot fill in 150mm layers 28,750 m³ 35.00 1,006,250

b Level and compact stone in 150mm layers 189,750 m² 0.75 142,313

c

'Ring Road' construction to adoptable standards; 45mm rolled asphalt 20mm precoated

55mm dense bitumen macadam (20mm) 110mm dense bitumen macadam (40mm)

390mm Type 1 certified crushed on site fill material compacted in max 150 layers on

subgrade

3,736 m² 70.00 261,520

d

'Spur Road' construction; 45mm rolled asphalt 20mm precoated 55mm dense bitumen

macadam (20mm) 110mm dense bitumen macadam (40mm) 390mm Type 1 certified

crushed on site fill material compacted in max 150 layers on subgrade

3,594 m² 70.00 251,580

e

Footpath construction 25mm medium graded macadam (10mm) 50mm dense bitumen

macadam (20mm) 250mm certified crushed on-site fill material compacted in max 150

layers on subgrade

1,473 m² 55.00 81,015

f Standard HB2 kerbs, bullnozed, 125 x 275mm; c/w concrete haunching & bed 1,440 m 30.00 43,200

g 50 x 150mm EF pre cast concrete edging c/w concrete haunching & bed 1,440 m 20.00 28,800

h White lining to new road 1 Item 5,000.00 5,000

j Extra over for curved kerbs (allowance 1 Item 7,500.00 7,500

k |Connesction into existing spur 1 Item 2,500.00 2,500

SUB-TOTAL ROADS, PATHS, PAVINGS & SURFACINGS 1,829,678


OHP @ 5% 105,206


TOTAL ROADS, PATHS, PAVINGS & SURFACINGS (To Summary) 2,538,748


4


ENABLING WORKS


Base Date: 2Q2018




3 FENCING

a Security vertical palisade fencing: 2.5m high; constructed in 55 x 100mm posts at 3m

centres set in concrete to three sides of the development plot. Assumed existing fencing to

front of development along 'Davy Way' is sufficient

831 m 175.00 145,425

SUB-TOTAL FENCING 145,425


OHP @ 5% 8,362


TOTAL FENCING (To Summary) 201,783

4 EXTERNAL DRAINAGE

a Cut; excavate pit for base of attenuation basin assumed 1.5m deep 9,000 m³ 5.00 45,000

b Cart on site to temp spoil heap + later cart back 18,000 m³ 4.00 72,000

c Fill; forming bund around attenuation pond to 1:3 batter all around; site won material 9,000 m³ 3.00 27,000

d Precast Headwall to suit assumed 225mm diameter pipe including grating 1 Item 5,000.00 5,000

e 225mm outfall pipe from attenuation pond to brook 15 m 150.00 2,250

Foul Water

fFoulwater drainage excavate trench for 225mm diameter vitrified clay pipe; backfill with

imported stone; cart away on site surplus material; 1.50 - 2.00m deep

317 m 100.00 31,700

g 225mm diameter vitrified clay pipe 317 m 35.00 11,095

hPre cast concrete manhole c/w cast iron cover & frame; assumed 1200mm diameter; 1.50 -

2.00m deep

7 Nr 2,000.00 14,000

j Allowance for Foul pump chamber (scope of work yet to be defined) 1 Item 50,000.00 50,000

k Drainage sundries; incl CCTV + Testing + rockers + branches + bends etc. 1 Item 5,000.00 5,000

l Connection to existing sewer 1 item 5,000.00 5,000

Storm Water

m Stormwater drainage excavate trench for 300mm diameter vitrified clay pipe; backfill with

imported stone; cart away on site surplus material; 1.50 - 2.00m deep

638 m 120.00 76,560

n 300mm diameter vitrified clay pipe 638 45.00 28,710

pPre cast concrete manhole c/w cast iron cover & frame; assumed 1200mm diameter; 1.50 -

2.00m deep

9 Nr 2,000.00 18,000

q Drainage sundries; incl CCTV + Testing + rockers + branches + bends etc. 1 Item 5,000.00 5,000

r Connection into existing sewer 1 Item 5,000.00 5,000

SUB-TOTAL EXTERNAL DRAINAGE 401,315


OHP @ 5% 23,076


TOTAL EXTERNAL DRAINAGE (To Summary) 556,840

5


ENABLING WORKS


Base Date: 2Q2018




5 EXTERNAL SERVICES

aNotional allowance for capped off services for 32 Nr light industrial units - including gas,

electricity, weater and telecommunications 32 Nr 5,000.00 160,000

b Street lighting 9m lamp posts; assumed one every 10m on ring road 48 Nr 4,750.00 228,000

Water mains supply

c Excavate trench from formation level; backfill with type 1 stone, cart away excavated

material to bunds; 0.75 - 1.00m deep; assumed DN100 ducts (approx. trench 0.45 wide x

0.75 deep)

884 m 25.00 22,100

d Granular B&S to 100mm duct; 150mm cover 884 m Included

e Pvc ducts; 100mm diameter 884 m 7.00 6,188

f Connection chambers assumed 1200 x 600 x 1.00m deep; assumed 7 Nr 7 Nr 1,750.00 12,250

g Warning tape 884 m 1.00 884

h Notional allowance for connection to existing water supply 1 Item 5,000.00 5,000

Electricity mains supply

jNotional allowance for 1 Nr new substation (subject to conformation from utilities

consultant) including GRP enclosure and base 1 Nr 110,000.00 110,000

k Excavate trench from formation level; backfill with selected excavated material; 0.50 -

0.70m deep; 2-Way duct system of assumed 150mm diameter ducts (approx. trench 0.60

wide x 0.50 deep)

884 m 20.00 17,680

l Sand B&S for 2-Way chamber of 150mm ducts; 100mm cover; approx. 0.60wd x 0.35dp 884 Included

m Pvc ducts; 150mm diameter 884 6.00 5,304

n HV chamber detail assumed 2400 x 1700 x 2000 deep assumed 7 Nr 7 Nr 2,600.00 18,200

p Warning tape 884 m 0.75 663

q Notional allowance for connection to existing electricity supply 1 Item 2,500.00 2,500

Gas mains supply

rExcavate trench from formation level; backfill with type 1 stone, cart away excavate material

to bunds; 0.50 - 0.70m deep; assumed DN200 ducts (approx. trench 0.45 wide x 0.50 deep)

884 m 25.00 22,100

s Sand B&S to 200mm duct; 250mm cover 884 m Included

t Pvc pipework; 200mm diameter 884 m 35.00 30,940

u Warning tape 884 m 0.75 663

v Draw pits assumed 450x450x750 deep; assumed 7 Nr 7 Nr 700.00 4,900

w Notional allowance for connection to existing gas supply 1 Item 2,500.00 2,500

Telecommunications and other communication system connections

x Excavated trench from formation level; backfill with selected excavated material; 0.75 -

1.00m deep; assumed 4-Way duct system of 110mm diameter ducts (approx. trench 0.60

wide x 0.75 deep)

884 m 22.50 19,890

y Sand B&S for 4-Way chamber of 110mm ducts; 100mm cover; approx. 0.60 wide x 0.60

deep

884 m Included

z Pvc ducts assumed 110mm diameter 3,536 m 5.00 17,680

aa Warning tape 884 m 0.75 663

bb Telecom chambers assumed 2.00m x 1.00m x 1.00m deep; assumed 7 Nr 7 Nr 2,000.00 14,000

cc Notional allowance for connection to existing telecommunications supply 1 Item 2,500.00 2,500

SUB-TOTAL EXTERNAL SERVICES 704,605


OHP @ 5% 40,515


TOTAL EXTERNAL SERVICES (To Summary) 977,666

6

QDC Quedgeley Phase III

Enabling Works

Abnormal Costs from Quedgley Phase III

Section 3 : ABNORMAL COSTS

ABNORMALS Quantity Unit RATE £ TOTAL

SITE PREPARATION WORKS

1 Notional allowance for contamination removal (based upon site investigations risk of

contamation deemed to be minor)

1 Item 50,000.00 50,000

2 Notional allowance for site vegetation strip 81,810 m² 0.25 20,453

3 Nominal 300mm strip off existing level 24,543 m³ 1.50 36,815

4 Cart topsoil on site to temp spoil heaps and later cart back 24,543 m³ 4.00 98,172

5 Filling topsoil to bunds and soft landscaping areas 24,543 m³ 2.00 49,086

6 Excavate to required level (Cut) 45,777 m³ 1.50 68,666

7 Cart subsoil on site to temp spoil heaps and later cart back 45,777 m³ 4.00 183,108

8 Filling to make up levels 583 m³ 2.00 1,166

9 Level and compact bottom of excavation 81,810 m² 0.50 40,905

10 Notional allowance for forming bunds (scope of works yet to be defined) 1 Item 75,000.00 75,000

ROADS, PATHS, PAVINGS & SURFACINGS

1 Compacted 6F2 stone spot fill in 150mm layers 28,750 m³ 35.00 1,006,250

2 Level and compact stone in 150mm layers 189,750 m² 0.75 142,313

3 'Spur Road' construction; 45mm rolled asphalt 20mm precoated 55mm dense

bitumen macadam (20mm) 110mm dense bitumen macadam (40mm) 390mm Type

1 certified crushed on site fill material compacted in max 150 layers on subgrade

3,594 m² 70.00 251,580

EXTERNAL DRAINAGE

1 Cut; excavate pit for base of attenuation basin assumed 1.5m deep 9,000 m³ 5.00 45,000

2 Cart on site to temp spoil heap + later cart back 18,000 m³ 4.00 72,000

3 Fill; forming bund around attenuation pond to 1:3 batter all around; site won material 9,000 m³ 3.00 27,000

4 Allowance for Foul pump chamber (scope of work yet to be defined) 1 Item 50,000.00 50,000

SUB-TOTAL 2,217,512


OHP @ 5% 127,507


Design Development Risk @ 5% 153,844

Construction Risk @ 5% 161,536

TOTAL ABNORMAL COSTS 3,392,263

7


ENABLING WORKS


Section 4: Assumptions

Assumptions

1 Prices based on current day levels with no allowance for Tender Price Inflation.

2 Notional Allowances have been included for the following items;

Contamination removal

Site vegetation strip

Forming bunds

Capped off services for 32 Nr light industrial units

Connection to existing water supply

Connection to existing electricity supply

Connection to existing gas supply

Connection to existing telecommunications supply

3 Assumed existing fencing to front of development along 'Davy Way' is sufficient, allowance made for fencing to

other 3 sides of development plot

4 Assumed site 'ring road' to be constructed to adoptable standards including street lighting

5 Assumed there is no requirement for 'cycle path' to site ring road

6 Existing trees on site to be retained

7 No allowance for removing any obstructions found below the ground

8 The measurements contained within this document shall not be relied upon for any purpose other than the

formulation of the cost estimate itself

9 Cut & Fill quantites based on Clarke Nicholls Marcel section drawings

10 Assumed no soil will be removed from site, all excess material will be used to form bunds

11 Road and path build up based on 'as built drawings' of spine road section & drainage details from the Quadrant

distribution centre project

12 Assumed work completed in one continuous phase with no allowance made for phasing the work

13 No allowance for service diversions or reinforcements

14 Assumed 1 Nr new substation required

15 Assumed no requirement for signalisation to new road

16 Assumed services route below

8


ENABLING WORKS


Section 5: General Exclusions

General Exclusions

1 Value Added Tax.

2 Land acquisition costs and fees and payments to existing tenants.

3 Client finance costs.

4 Legal costs.

5 Project insurances.

6 Marketing costs.

7 Design and other professional fees.

8 Site investigations and surveys.

9 Currency fluctuations.

10 Management set up costs, public relations and publicity costs.

11 Tenant void periods.

12 BREEAM assessment costs.

13 Main contractor preliminaries and attendances in the event that the tenant fitout period

occurs post the scheme practical completion date.

14 Tenant contributions.

15 Tenant management costs

16 Party wall awards / contributions

17 Rights of light payments

18 Contributions to public transport

19 Park and ride contributions, and contributions to training and employment schemes.

9


ENABLING WORKS


Section 6: INCLUSIONS & EXCLUSIONS

Nr Item

INCLUSIONS & EXCLUSIONS

1 VAT

2 Professional fee allowance

3 Section 106 Works

4 Section 278 Works

5 Contaminated land allowances (except where noted)

6 Asbestos Removal

7 Archaeological works

8 General Surveys or works arising from

9 Legal Costs

10 Planning fees

11 Building regulation fees

12 Site acquisition costs

13 Local Authority & Private infrastructure work outside the boundary

of the site

14 Tender price inflation

15 Ground Water Mitigation Works (pumping or the like)

16 Tenant Fit Out Works

17

18 Reinforcement of infrastructure off site

19 Remedial works to ground conditions

20 Disposal of excavated material off site

21 Cut and Fill across development plot

22 Adjustment of site levels to achieve formation levels

23 Fencing / barriers to perimeter of development plot

24 Diversion of existing services within the site boundary

25 Demolition of existing buildings

26 Sustainability Works

Addressed in

Study

No Allowance

within Study

Diversion/Lowering of existing services crossing/access points to the site

10


ENABLING WORKS


Section 7: Schedule of Drawings, Reports and Other Documents Used

1 Architect (PRC Architecture)

Drawings:

10352_FE_201 November 2015

Schedules and Reports:

2 Structural Engineer (Clarke Nicholls Marcel)

Drawings:

10107 / C-SK100_X

10107 / C-100_P1

10107 / C-101_P1

10107 / C-102_P1

10107 / C-104_P1

10107 / C-105_P1

10107 / C-106_P1

10107 / C-107_P1

11


ENABLING WORKS


Base Date: 2Q2018

Section 8: Pricing Notes

Pricing profile and market activity

The pricing basis of this preliminary budget estimate is current market conditions and should be reviewed

at regular intervals of no longer than 3 months.

This preliminary budget estimate has been prepared from outline information only and we strongly advise

that the consultants should be allowed to develop the brief further before any irrevocable financial

commitment is entered into by the Client.

It should be noted that the construction industry is currently experiencing changing market conditions with

the supply chain becoming increasing selective in the opportunities they pursue. This is leading to some

pricing volatility with projects being considered based on procurement route, risk apportionment,

programme and the robustness of tender documentation. The number of ‘major’ tier one contractors both

suitable and available for sizeable and/or complex schemes is becoming more limited with projects

tending to be favoured where price and programme risk are fairly shared. In addition, the lack of

contractor in-house resources coupled with the potential cost of tendering may also dissuade contractors

from tendering. This is starting to have a knock-on effect generally.

Projects with potential pitfalls, inappropriate risk transfer and nonstandard contract conditions may result

in tendering opportunities being declined or they may attract a pricing premium.

It is therefore essential that all aspects of the project profile are fully considered by the client and project

team in light of this current volatility. This should help ensure that project procurement is appropriate,

project documentation is comprehensive and risk is effectively addressed.

The measurements contained within this document shall not be relied upon for any purpose other than the

formulation of the cost estimate itself

12

ORDER OF COST ESTIMATE (ADDENDUM)

QUEDGELEY PHASE III – ENABLING WORKS

for

HANSTEEN

Construction Cost Consultant

Heronry House

78 Eastwick Road

Walton on Thames

Surrey KT12 5AS

June 2018


ENABLING WORKS


C O N T E N T S

1.0. INTRODUCTION

2.0. MAIN SUMMARY

3.0. ABNORMAL CONSTRUCTION COSTS

4.0. SCHEDULE OF DRAWINGS


ENABLING WORKS


SECTION 1 INTRODUCTION

1. This Addendum Order of Cost Estimate has been prepared to consider the impact

on the anticipated construction costs arising from proposed changes to the scheme

identified in Gleeds Cost Report Issue 4.0. dated May 2018, and should be considered

in conjunction with same.

2. Unless otherwise stated, all assumptions, inclusions, exclusions, and pricing levels

used in this report are identical to the aforementioned Gleeds Cost Report.

3. The Gleeds Cost Report was based on the proposed site layout identified on PRC

Architecture Planning Drawing No. FE 201 dated November 2015, which showed the

site being sub-divided into five separate site sections :

a) 5.25 acres located to the North West

b) 4 acres located to the North East

c) 2 acres located to the East

d) 2.6 acres located to the South East

e) 2.7 acres located to the South West

These individual site sections were served by a spine loop road constructed

to ‘Adoptable’ standards.

4. Following consultations, a revised scheme has been prepared by PRC Architecture

& Planning, and shown on Drawing No. 10352 FE 202 dated June 2018. The

principal changes to the earlier scheme are as follows :

a) The 5.25 acre site located to the North West remains unchanged, with

terraces of small units.

b) The 4 acre site located to the North East has been amalgamated with

the 2 acre site located to the East, with slight modifications to form a

revised site of 6.026 acres, on which it is proposed to construct

warehouse Unit No. 1 of 9,290 sq.m. (100,000 sq.ft.) GIA.

c) The 2.6 acre site located to the South East has been modified to form

a revised site of 2.372 acres, on which it is proposed to construct

warehouse Unit No. 2 of 2,787 sq.m. (30,000 sq.ft.) GIA.


ENABLING WORKS


SECTION 1 INTRODUCTION (CONTINUED)

d) The 2.7 acre site located to the South West has been modified

to form two sites; one of 1,006 acres, on which it is proposed

to construct warehouse Unit No. 3 of 1,858 sq.m. (20,000 sq.ft.) GIA;

the other of 1,972 acres, on which it is proposed to construct warehouse unit

No. 4 of 3,716 sq.m. (40,000 sq.ft.) GIA.

The layout of the spine loop located to the South West remains unchanged.

5. Based on the assumption that, with the exception of Unit No. 1, the formation

levels for all of the other units will remain as originally envisaged, it will be necessary

to adjust the Gleeds Cost Report to reflect the following changes :

a) Site Preparation Works

Unit No. 1 – Increase the amount of cut and fill earthworks required to

reflect the larger single footprint/plateau required for this unit, and

incorporate an allowance for piling (based on a soils investigation report

prepared by Geotechnical Engineering Ltd dated 2015.

b) Roads, Paths, Pavings and Surfacing

Reduce the extent of the spur roads required in the area now proposed

to locate Unit No. 1.

c) External Drainage

Increase provision for attenuation/storage of surface water as a result

of the greater area of impervious surface for this scheme.

d) External Services

Include an allowance for an additional electricity sub-station to service

Unit No. 1.


ENABLING WORKS


SECTION 1 INTRODUCTION (Continued)

6. The scope of the works covered by this report includes the provision of the

following :

Site preparation earthworks, including excavation, filling and

levelling to achieve the various formation levels.

Removal of contaminated material.

Foul and surface water infrastructure, including

attenuation facilities.

Gas, water, electricity, and telecom mains infrastructure.

Spine loop road (constructed to ‘Adoptable’ Standards.

No allowances have been included for the cost of construction of the

warehouse units or their associated external yards, paved areas and

parking facilities.


ENABLING WORKS


SECTION 2 MAIN SUMMARY

£

1. Site Preparation Works 1,045.329

2. Roads, Paths, Pavings and Surfacings 2,423,582

3. Fencing 201,783

4. External Drainage 667,843

5. External Services 1,130,295

________

SUB-TOTAL 5,468,832

6. Main Contractor Costs

a) Allowance for Preliminaries 15% included above

b) Allowance for Overheads & Profit 5% included above

7. Risk and Inflation

a) Design Development Risk 5% 273,442

b) Construction Risk 5% 287,114

________

Total Estimated Cost at Current Day 6,029,388

(2Q2018) ________

Total Estimated Cost at Current Day

(rounded) 6,030,000


ENABLING WORKS


SECTION 3 ABNORMAL CONSTRUCTION COSTS

SITE PREPARATION WORKS

Quantity Unit Rate Total

£

1. Notional allowance for contamination removal

(based upon site investigations risk of contamination 1 item 50,000 50,000

deemed to be minor)

2. Notional allowance for site vegetable strip 81,810 sq.m. 0.25 20,453

3. Nominal 300mm strip off existing level 24,543 cu.m. 1.50 36,815

4. Cart topsoil on site to temp spoil heaps and

later cart back 24,543 cu.m. 4.00 98,172

5. Filling topsoil to bunds and soft

landscaping areas 24,543 cu.m. 2.00 49,086

6. Excavate to required level (Cut) 45,777 cu.m. 1.50 68,666

7. Cart subsoil on site to temp spoil heaps

and later cart back 45,777 cu.m. 4.00 183,108

8. Filling to make up levels 583 cu.m. 2.00 1,166

9. Level and compact bottom of excavation 81,810 sq.m. 0.50 40,905

10. Notional allowance for forming bunds (scope

of works yet to be defined) 1 item 75,000 75,000

11. Notional allowance for cut and fill, and

piling to Unit 1. 1 item 130,000 130,000


ENABLING WORKS


SECTION 3 ABNORMAL CONSTRUCTION COSTS (Continued)

ROADS, PATHS, PAVINGS & SURFACING


£

1. Compacted 6F2 stone spot fill in 150mm

layers 28,750 cu.m. 35.00 1,006,250

2. Level and compact stone fill in 150mm

layers 189,750 sq.m. 0.75 142,313

3. ‘Spur Road’ construction; 45mm rolled asphalt

20mm pre-coated 55mm dense bitumen

macadam (20mm), 110mm dense bitumen

macadam (40mm), 390mm Type 1 certified

crushed on site fill material compacted in

max 150 layers on sub-grade 2,385 sq.m. 70.00 166,950

EXTERNAL DRAINAGE

1. Cut, excavate pit for base of attenuation

basin assumed 1.5m deep 9,000 cu.m. 5.00 45,000

2. Cart on site to temporary spoil heap

+ later cart back 18,000 cu.m. 4.00 72,000

3. Fill; forming bund around attenuation pond

to 1:3 batter all around; site won

material 9,000 cu.m. 3.00 27,000

4. Allowance for foul pump chamber (scope of

work yet to be defined) 1 item 50,000 50,000

5. Allowance for additional surface water

attenuation 1 item 80,000 80,000


ENABLING WORKS


SECTION 3 ABNORMAL CONSTRUCTION COSTS (Continued)


£

EXTERNAL SERVICES

1. Notional allowance for electricity sub-station

Unit 1 1 item 110,000 110,000

_______

SUB-TOTAL 2,452,885


OHP @ 5% 141,040

Inflation from Q1 2016 to Q2 2018 based on

BCIS TPI @ 14.91% 441,556

Design Development Risk @ 5% 170,171

Construction Risk @ 5% 178,679

________

TOTAL ABNORMAL COSTS 3,752,263


ENABLING WORKS


SECTION 4 SCHEDULE OF DRAWINGS

1. PRC ARCHITECTURE & PLANNING

10352 FE 202 JUNE 2018

2. CLARKE NICHOLS MARCEL

10107/C - SK 100 X

10107/C - 100 P1

10107/C - 101 P1

10107/C - 102 P1

10107/C - 104 P1

10107/C - 105 P1

10107/C - 106 P1

10107/C - 107 P1



Appendix H – C&W ‘Upper Parameter’ Appraisal

Quedgeley Residential 100% Open Market Land at Davy Way, Gloucester C&W Development Appraisal


10 July 2018

APPRAISAL SUMMARY CUSHMAN & WAKEFIELD (EUROPE) Quedgeley Residential 100% Open Market Land at Davy Way, Gloucester C&W Development Appraisal

Summary Appraisal for Phase 1 Open Market

Currency in £

REVENUE Sales Valuation Units ft² Sales Rate ft² Unit Price Gross Sales

House Type A 5 12,730 280.00 712,880 3,564,400 House Type B 7 10,549 280.00 421,960 2,953,720 House Type C 3 4,230 280.00 394,800 1,184,400 House Type F 48 55,296 280.00 322,560 15,482,880 House Type G 8 6,976 280.00 244,160 1,953,280 House Type H 45 35,865 280.00 223,160 10,042,200 House Type I (1) 6 2,525 280.00 117,810 706,860 House Type I (2) 6 2,744 280.00 128,044 768,264 House Type J 19 21,679 280.00 319,480 6,070,120 House Type K 13 14,547 280.00 313,320 4,073,160 Totals 160 167,140 46,799,284


OUTLAY

ACQUISITION COSTS Residualised Price 7,872,764

7,872,764 Stamp Duty 5.00% 393,638 Agent Fee 1.00% 78,728 Legal Fee 0.80% 62,982

535,348 CONSTRUCTION COSTS Construction Units Unit Amount Cost

Garages - single 7 un 5,000 35,000 Garages - double 5 un 10,000 50,000 Totals 85,000

ft² Build Rate ft² Cost House Type A 12,730 94.48 1,202,730 House Type B 10,549 94.48 996,670 House Type F 55,296 94.48 5,224,366 House Type G 6,976 94.48 659,092 House Type H 35,865 94.48 3,388,525 House Type I (1) 2,970 108.98 323,671 House Type I (2) 3,228 108.98 351,787 House Type J 21,679 94.48 2,048,232 House Type K 14,547 94.48 1,374,401 Totals 168,070 15,569,474 15,654,474

Contruction Contingency 5.00% 1,095,268 1,095,268

Other Construction Site Preparation Works 716,309 External Drainage 287,347 External Services 809,655 Extra over Services for Residential 491,200 External Works (Roads, paving etc) 1,871,820 Tree protection works (allowance) 50,000 Four New Retention Ponds 320,000 Environmental Improvements 510,000 Preliminaries 15.00% 758,450 Overheads and Profit 7.50% 436,109 Design Contingency / Risk 5.00% 312,544

6,563,434


1,777,433 DISPOSAL FEES

Sales Agent Fee 3.00% 1,403,979 Sales Legal Fee 160 un 500.00 /un 80,000

1,483,979 FINANCE

Debit Rate 6.000%, Credit Rate 0.000% (Nominal) Land 2,079,804 Construction 348,961 Other 27,963 Total Finance Cost 2,456,728


PROFIT 9,359,857

Project: Quedgeley Residential 100% Open Market ARGUS Developer Version: 8.00.000 Date: 10/07/2018

APPRAISAL SUMMARY CUSHMAN & WAKEFIELD (EUROPE) Quedgeley Residential 100% Open Market Land at Davy Way, Gloucester C&W Development Appraisal

Performance Measures Profit on Cost% 25.00% Profit on GDV% 20.00% Profit on NDV% 20.00%

IRR 20.06%

Profit Erosion (finance rate 6.000) 3 yrs 9 mths

Project: Quedgeley Residential 100% Open Market ARGUS Developer Version: 8.00.000 Date: 10/07/2018



Appendix I – New Build Residential Sales

Comparable Evidence

PHOTO PROPERTY DESCRIPTION GIA

(SQ FT) DATE PRICE

1. Hunts Grove Gate, Hardwicke, Gloucester – Crest Nicholson First phase of the large scale development by Crest Nicholson located directly to the south east of the Site.

The Hartley,

Hunts Grove

Gate, Hardwicke,

Gloucester

3-bedroom semi-detached house. Double

garage and driveway parking.

966 FOR SALE

£265K (£273 psf)

The Calder,

Hunts Grove

Gate, Hardwicke,

Gloucester

4 bedroom detached

home. Double garage and

driveway parking.

1,429 FOR SALE

£390K (£272 psf)

The Welwyn,

Hunts Grove

Gate, Hardwicke,

Gloucester

4-bedroom semidetached

house. 1,218

FOR SALE

£355K - £365K (£291 - £300

psf)

The Monmouth,

Hunts Grove

Gate, Hardwicke,

Gloucester

Plot 34, 4-bedroom detached

house. Single garage and

driveway parking.

1,109 RESER-

VED £315K

(£284 psf)

2. Lassington Reach, Lassington Lane, Highnam – Bellway Homes Development of 3, 4 ad 5 bedroom homes, located to the north west of Gloucester city centre, north of the village of Highnam.

The Shipton,

Lassington

Reach, Highnam

3 bedroom end of terrace

house. 1,006

FOR SALE

£280K (£278 psf)

The Wilbury,

Lassington

Reach, Highnam

4 bedroom detached house.

1,181 FOR SALE

£350K (£296 psf)

The Willcott,

Lassington

Reach, Highnam

4 bedroom detached house.

1,188 FOR SALE

£355K (£299 psf)



3. Hardwicke Grange, Bristol Road, Hardwicke, Gloucester – Bellway Homes

Development of 3 and 4 bedroom homes in Hardwicke, 5 miles to the south of Gloucester city centre.

The Walton,

Hardwicke

Grange, Bristol

Road, Hardwick

4 bedroom detached

house. Garage and parking.

1,353 FOR SALE

£350K (£259 psf)

4. Augustus Park, Coopers Edge, Gloucester – Bovis Homes Development of 3, 4 and 5 bedroom homes, located 5 miles north east of Gloucester city centre within an established residential development area.

The Sheringham,

Augustus Park,

Gloucester

3 bedroom semi-detached house. Garage.

846 FOR SALE

From £280K (£331 psf)

The Oxford,

Augustus Park,

Gloucester

5 bedroom, detached

house. Garage. 1,618

FOR SALE

From £395K (£243 psf)

The Southwold,

Augustus Park,

Gloucester


839 FOR SALE

From £250K (£298 psf)

The Cranham,

Augustus Park,

Gloucester

3 bedroom, terraced house.

Garage. 838

FOR SALE

From £252K (£301 psf)

5. Imperial Place / Centurion View, Coopers Edge, Gloucester – Bovis Homes Two developments of 2, 3, 4 and 5 bedroom homes, located 5 miles north east of Gloucester city centre within an established residential development area.

The Southwold,

Imperial Park,

Gloucester


839 FOR SALE

From £250K (£298 psf)

The Slimbridge,

Imperial Park,

Gloucester


954 FOR SALE

From £270K (£283 psf)



The Sheringham,

Augustus Park,

Gloucester


846 FOR SALE

From £270K (£319 psf)

The Epsom,

Centurion View,

Gloucester

3 bedroom detached

house. Garage and / or

allocated parking.

942 FOR SALE

From £295K (£313 psf)

The Cambridge,

Centurion Way,

Gloucester

4 bedroom detached

house. Garage. 1,268

FOR SALE

From £374K (£295 psf)

6. Kings Copse, Boulmer Avenue Kingsway, Quedgeley, Gloucester – Taylor Wimpey A development of 2, 3, 4 and 5 bedroom homes in Kingsway Village, 3 miles south of Gloucester city centre.

The Gosford,

Boulmer Avenue

Kingsway,

Quedgeley,

Gloucester

Plot 893, 3 bedroom

terraced house. Allocated parking.

866 FOR SALE

£225,000 (£254 psf)

The Brampton,

Boulmer Avenue

Kingsway,

Quedgeley,

Gloucester

Plot 887, 3 bedroom semi-

detached house. Garage and allocated

parking.

1,149 FOR SALE

£265K (£230 psf)

The Midford,

Boulmer Avenue

Kingsway,

Quedgeley,

Gloucester

Plot 890, 4 bedroom detached

house. Garage and allocated

parking.

1,170 FOR SALE

£270K (£231 psf)

The Shelford,

Boulmer Avenue

Kingsway,

Quedgeley,

Gloucester


house. Garage and allocated

parking.

1,378 FOR SALE

£315K (£229 psf)

7. Nuthill Green, Donaldson Drive, Brockworth, Gloucester - Persimmon A development of 3 and 4 bedroom homes in Kingsway Village, to the north east of Gloucester city centre.

The Cheltenham,

Nuthill Green,

Brockworth

Plot 88, 3 bedroom detached house.

863 FOR SALE

£280K (£325 psf)



The Cirencester,

Nuthill Green,

Brockworth


detached house.

846 FOR SALE

£270K (£319 psf)

The Ledbury,

Nuthill Green,

Brockworth

Plot 83, 4 bedroom detached house.

1,293 FOR SALE

£370K (£286 psf)

The Stroud,

Nuthill Green,

Brockworth


detached house.

794 FOR SALE

£250K (£314 psf)

The Worcester,

Nuthill Green,

Brockworth

Plot 73, 3 bedroom, 3 storey town

house.

1,078 FOR SALE

£296K (£275 psf)

8. Saxon Gate, Marsh Lane, Leonard Stanley, Stonehouse – Barratt Homes A development of 2, 4 and 5 bedroom homes approximately 12 miles south of Gloucester city centre (south of Stonehouse).

The Kingsley,

Saxon Gate,

Marsh Lane,

Leonard Stanley


house. Garage and two parking

spaces.

1,139 FOR SALE

£345K (£303 psf)

The Radleigh,

Saxon Gate,

Marsh Lane,

Leonard Stanley


house. Garage and two parking

spaces.

1,313 FOR SALE

£410K (£312 psf)



Appendix J – BCIS Summary Sheet – Residential

Description: Rate per m2 gross internal floor area for the building Cost including prelims. Last updated: 23Jun2018 12:20

Rebased to South West Region ( 98; sample 867 )

£/m2 study

Maximum age of results: Default period

Building function (Maximum age of projects)

£/m² gross internal floor areaSample

Mean Lowest Lower quartiles Median Upper quartiles Highest

New build

810. Housing, mixeddevelopments (15)

1,210 577 1,051 1,180 1,338 2,729 1204

810.1 Estate housing

Generally (15) 1,188 576 1,017 1,153 1,308 4,044 1809

Single storey (15) 1,329 670 1,134 1,274 1,499 4,044 294

2storey (15) 1,156 576 1,006 1,131 1,265 2,279 1375

3storey (15) 1,175 747 948 1,122 1,318 2,428 136

4storey or above (15) 2,317 1,250 2,128 3,761 4

810.11 Estate housingdetached (15)

1,523 904 1,175 1,347 1,569 4,044 20

810.12 Estate housingsemi detached

Generally (15) 1,184 592 1,025 1,153 1,303 2,220 424

Single storey (15) 1,353 836 1,160 1,323 1,501 2,220 76

2storey (15) 1,151 592 1,016 1,126 1,273 2,027 328

3storey (15) 1,079 802 899 1,023 1,178 1,736 20

810.13 Estate housingterraced

Generally (15) 1,209 576 1,017 1,158 1,343 3,761 386

Single storey (15) 1,330 904 1,111 1,254 1,542 1,967 45

2storey (15) 1,184 576 1,006 1,153 1,323 2,279 281

3storey (15) 1,189 758 948 1,098 1,273 2,428 59

4storey or above (5) 3,761 1

816. Flats (apartments)

Generally (15) 1,403 688 1,173 1,338 1,586 4,764 970

12 storey (15) 1,335 814 1,138 1,281 1,469 2,518 238

35 storey (15) 1,384 688 1,170 1,326 1,579 2,728 647

6+ storey (15) 1,752 1,029 1,425 1,690 1,863 4,764 82

29Jun2018 08:25 © RICS 2018 Page 1 of 1



Appendix K – Alium Group Feasibility Estimate (July

2018)

Feasibility Estimate

Quedgeley, Gloucester

for

Cushman & Wakefield

Report Nr: 2 Date: 06 July 2018

Information Handling Classification: Restricted Page 1

Feasibility Estimate Quedgeley, Gloucester

Commentary

1. Introduction

1.1 This feasibility cost estimate has been prepared on behalf of Cushman & Wakefield for the site works and abnormals

asscoaited with the creation of 160 new private sale homes located in Quedgeley, Gloucester.

1.2 The estimate represents the anticipated construction cost at current prices using a competitive method

of procurement and a contractor design form of contract.

1.3 We have based the costs for site preparation, site drainage and external drainage on the cost previously

submitted by Gleeds in their enabling works cost estimate dated January 2016. We have adjusted the costs

to be in line with 2Q2018.

1.4 We have used the resi masterplan drawing to complete our take off for the roads, footpaths and made an

allowance of £3,500 per plot for garden/plot landscaping. An allowance of £30,000 was included for the

play space area. A breakdown is shown in the breakdown section.

1.5 Main contractor preliminaries have been allowed at 15%. Main contractor OH&P has been priced at 7.5%, this

is in line with other recent tendered projects.

1.6 We have allowed for a 5% design contigency. We would recommend this is the minimum level of contingency at the

current design stage.

1.7 Professional fees have been allowed for within the Cushman and Wakefield report

1.8 We have allowed for removal/treatment of localised contamination as identified within SI reports. We note that lime

stabilisation has previsouly taken place - so our allowance is for any additional that may be required.

Further investigations would be required.

1.9 Environmental improvements have been allowed based upon the Phase 1 Environmental report issued

by ITP Energised.

2. Exclusions

The following items are not included in this estimate of construction cost and

allowance should be made elsewhere:

2.1 VAT

2.2 Removal of obstructions and excessive contaminated land

2.3 Site acquisition costs including land, agents and legal fees

2.4 Local Authority charges, costs of planning approval (CIL/S106);

2.5 Finance charges / Finance Costs.

2.6 Asbestos in any areas.

2.7 Inflation beyond 2Q2018.

2.8 Rights of Light / Sunlight analysis.

2.9 Sales and marketing costs .

06 July 2018

Page 2

2.10 Piling or abnormal foundations. We note that lime stabilisation has previously taken place and we have made an

allowance to any additional stabilisation that may be required.

3. Information used

The below information has been used within this report:

Accommodation schedule 17050 (sk) 202A dated 8th November 2017

Proposed masterplan17050 (sk) 202 dated 1st November 2017

Quedgeley Pre App dated 11th November 2016

Pre app cost estimate prepared by Gleeds dated January 2016.

Ground Investigation Report, ref 30722 dated 24/06/2015

Phase 1 Environmental Assessment by ITP Energised dated Feb 2018

Page 3


Summary

Area

(m2)

Cost (£) Total (£) £ / m22 GIFA

Site Works/Abnormals

Site preparation works 716,309 716,309 46

External drainage 287,347 287,347 18

External services 809,655 809,655 52Extra over services above for connections to houses 491,200 491,200 31External Works; roads, paving, gardens etc 1,871,820 1,871,820 120Tree protection works; allowance 50,000 50,000 3

Four new retention ponds - £80k per pond 320,000 320,000 20

Environmental improvements; refer to breakdown 510,000 510,000 33

£ 5,056,331 324

Other Costs

Preliminaries 15% 758,450 49

Overheads and Profit 7.5% 436,109 28

Design Contingency/Risk 5% 312,544 20

£ 1,507,103 97

Total £ 6,563,434 £420 /m2

Order of Cost Range

On the basis of the project brief and the limited design information

available, we anticipate that the outturn construction cost for the elements listed above, at current prices

will be in the range of: £5.9m and £7.2m (± 10%)

Floor Areas

Gross internal floor area 15,612 m2 168,042 sq ft

Cost per unit 160 unit

Cost per ft2 £39 per ft2

06 July 2018

£41,021 per unit

Page 4


Breakdown

1 External works 1,871,819.50

Main estate ring road - tarmac 2991 m2 85.00 254,209.50

Spur roads; block paved 6625 m2 110.00 728,750.00

Footpaths; 4981 m2 60.00 298,860.00

Plot landscaping, incl fence, turf, car park spaces 160 nr 3,500.00 560,000.00

Play space; allowance 1 Psum 30,000.00 30,000.00

2 Services connections 491,200.00

Water connection charge per house 160 nr 550.00 88,000.00

Sewerage connection charge per house 160 nr 550.00 88,000.00

Electric meter and connection charge per house 160 nr 1,500.00 240,000.00

Gas meter and connection charge per house 160 nr 350.00 56,000.00

BT connection charge per house 160 nr 120.00 19,200.00

3 Environmental Improvements 510,000.00

Further investigation works 1 Psum 40,000.00 40,000.00

Allowance to protect hydrocarbon ingress - upgrade

materials1 PSum 50,000.00 50,000.00

Allowance for hotspot removal 1 Psum 20,000.00 20,000.00

Capping garden areas with geotextile 1 PSum 300,000.00 300,000.00

Abnormal foundations/lime stabilisation 1 PSum 100,000.00 100,000.00

06 July 2018

Page 5



Appendix L – C&W Policy Compliant Appraisal

Quedgeley Residential Policy Compliant Land at Davy Way, Gloucester C&W Development Appraisal


10 July 2018

APPRAISAL SUMMARY CUSHMAN & WAKEFIELD (EUROPE) Quedgeley Residential Policy Compliant Land at Davy Way, Gloucester C&W Development Appraisal

Summary Appraisal for Merged Phases 1 2

Currency in £


House Type A 4 10,184 280.00 712,880 2,851,520 House Type B 5 7,535 280.00 421,960 2,109,800 House Type C 2 2,820 280.00 394,800 789,600 House Type F 34 39,168 280.00 322,560 10,967,040 House Type G 6 5,232 280.00 244,160 1,464,960 House Type H 31 24,707 280.00 223,160 6,917,960 House Type I (1) 4 1,683 280.00 117,810 471,240 House Type I (2) 4 1,829 280.00 128,044 512,176 House Type J 13 14,833 280.00 319,480 4,153,240 House Type K 9 10,071 280.00 313,320 2,819,880 House Type A 1 2,546 140.00 356,440 356,440 House Type B 2 3,014 140.00 210,980 421,960 House Type C 1 1,410 140.00 197,400 197,400 House Type F 14 16,128 140.00 161,280 2,257,920 House Type G 2 1,744 140.00 122,080 244,160 House Type H 14 11,158 140.00 111,580 1,562,120 House Type I (1) 2 842 140.00 58,905 117,810 House Type I (2) 2 915 140.00 64,022 128,044 House Type J 6 6,846 140.00 159,740 958,440 House Type K 4 4,476 140.00 156,660 626,640 Totals 160 167,140 39,928,350


OUTLAY

ACQUISITION COSTS Residualised Price 4,782,289 Residualised Price (Negative land) (1,030,569)




ft² Build Rate ft² Cost House Type A 10,184 94.48 962,184 House Type B 7,535 94.48 711,907 House Type F 39,168 94.48 3,700,593 House Type G 5,232 94.48 494,319 House Type H 24,707 94.48 2,334,317 House Type I (1) 1,980 108.98 215,780 House Type I (2) 2,152 108.98 234,525 House Type J 14,833 94.48 1,401,422 House Type K 10,071 94.48 951,508 House Type A 2,546 94.48 240,546 House Type B 3,014 94.48 284,763 House Type F 16,128 94.48 1,523,773 House Type G 1,744 94.48 164,773 House Type H 11,158 94.48 1,054,208 House Type I (1) 990 108.98 107,890 House Type I (2) 1,076 108.98 117,262 House Type J 6,846 94.48 646,810 House Type K 4,476 94.48 422,892 Totals 168,070 15,569,474 15,654,474

Contruction Contingency 5.00% 1,095,268 CIL 118,062 ft² 7.84 /ft² 925,608

2,020,876 Other Construction

Site Preparation Works 501,416 External Drainage 201,143 External Services 566,759 Extra over Services for Residential 343,840 External Works (Roads, paving etc) 1,310,274 Tree protection works (allowance) 35,000 Four New Retention Ponds 224,000 Environmental Improvements 357,000 Preliminaries 15.00% 530,915 Overheads and Profit 7.50% 305,276

Project: Quedgeley Residential Policy Compliant ARGUS Developer Version: 8.00.000 Date: 10/07/2018

APPRAISAL SUMMARY CUSHMAN & WAKEFIELD (EUROPE) Quedgeley Residential Policy Compliant Land at Davy Way, Gloucester C&W Development Appraisal

Design Contingency / Risk 5.00% 218,781 Site Preparation Works 214,893 External Drainage 86,204 External Services 242,897 Extra over Services for Residential 147,360 External Works (Roads, paving etc) 561,546 Tree protection works (allowance) 15,000 Four New Retention Ponds 96,000 Environmental Improvements 153,000 Preliminaries 15.00% 227,535 Overheads and Profit 7.50% 130,833 Deisng Contingency / Risk 5.00% 93,763

6,563,435



Sales Agent Fee 3.00% 991,722 Sales Legal Fee 112 un 500.00 /un 56,000 Sales Legal Fee 10,000

1,057,722 FINANCE



PROFIT 7,124,651


IRR 23.04%


Project: Quedgeley Residential Policy Compliant ARGUS Developer Version: 8.00.000 Date: 10/07/2018



Appendix M – C&W Sensitivity Testing

Quedgeley Residential 20% AH Land at Davy Way, Gloucester C&W Development Appraisal


10 July 2018

APPRAISAL SUMMARY CUSHMAN & WAKEFIELD (EUROPE) Quedgeley Residential 20% AH Land at Davy Way, Gloucester C&W Development Appraisal


Currency in £




OUTLAY

ACQUISITION COSTS Residualised Price 5,221,084 Residualised Price (Negative land) (537,140)




ft² Build Rate ft² Cost House Type A 10,184 94.48 962,184 House Type B 9,042 94.48 854,288 House Type F 43,776 94.48 4,135,956 House Type G 5,232 94.48 494,319 House Type H 28,692 94.48 2,710,820 House Type I (1) 2,475 108.98 269,725 House Type I (2) 2,690 108.98 293,156 House Type J 17,115 94.48 1,617,025 House Type K 11,190 94.48 1,057,231 House Type A 2,546 94.48 240,546 House Type B 1,507 94.48 142,381 House Type F 11,520 94.48 1,088,410 House Type G 1,744 94.48 164,773 House Type H 7,173 94.48 677,705 House Type I (1) 495 108.98 53,945 House Type I (2) 538 108.98 58,631 House Type J 4,564 94.48 431,207 House Type K 3,357 94.48 317,169 Totals 168,070 15,569,474 15,654,474

Contruction Contingency 5.00% 1,095,268 CIL 132,441 ft² 7.84 /ft² 1,038,339



Project: Quedgeley Residential 20% AH ARGUS Developer Version: 8.00.000 Date: 10/07/2018


Deisng Contingency / Risk 5.00% 250,036 Site Preparation Works 143,262 External Drainage 57,469 External Services 161,931 Extra over Services for Residential 98,240 External Works (Roads, paving etc) 374,364 Tree protection works (allowance) 10,000 Four New Retention Ponds 64,000 Environmental Improvements 102,000 Preliminaries 15.00% 151,690 Overheads and Profit 7.50% 87,222 Deisng Contingency / Risk 5.00% 62,509

6,563,434



Sales Agent Fee 3.00% 1,112,507 Sales Legal Fee 127 un 500.00 /un 63,500 Sales Legal Fee 10,000

1,186,007 FINANCE



PROFIT 7,795,478


IRR 22.58%



Quedgeley Residential 22% AH Land at Davy Way, Gloucester C&W Development Appraisal


10 July 2018



Currency in £




OUTLAY

ACQUISITION COSTS Residualised Price 5,080,112 Residualised Price (Negative land) (589,343)




ft² Build Rate ft² Cost House Type A 10,184 94.48 962,184 House Type B 7,535 94.48 711,907 House Type F 42,624 94.48 4,027,116 House Type G 5,232 94.48 494,319 House Type H 27,895 94.48 2,635,520 House Type I (1) 2,475 108.98 269,725 House Type I (2) 2,690 108.98 293,156 House Type J 17,115 94.48 1,617,025 House Type K 11,190 94.48 1,057,231 House Type A 2,546 94.48 240,546 House Type B 3,014 94.48 284,763 House Type F 12,672 94.48 1,197,251 House Type G 1,744 94.48 164,773 House Type H 7,970 94.48 753,006 House Type I (1) 495 108.98 53,945 House Type I (2) 538 108.98 58,631 House Type J 4,564 94.48 431,207 House Type K 3,357 94.48 317,169 Totals 168,070 15,569,474 15,654,474

Contruction Contingency 5.00% 1,095,268 CIL 128,985 ft² 7.84 /ft² 1,011,244





Deisng Contingency / Risk 5.00% 243,785 Site Preparation Works 157,588 External Drainage 63,216 External Services 178,124 Extra over Services for Residential 108,064 External Works (Roads, paving etc) 411,800 Tree protection works (allowance) 11,000 Four New Retention Ponds 70,400 Environmental Improvements 112,200 Preliminaries 15.00% 166,859 Overheads and Profit 7.50% 95,944 Deisng Contingency / Risk 5.00% 68,760

6,563,434



Sales Agent Fee 3.00% 1,083,476 Sales Legal Fee 124 un 500.00 /un 62,000 Sales Legal Fee 10,000

1,155,476 FINANCE



PROFIT 7,655,719


IRR 22.95%

